
Ontario's
Automobile Sector
Driving Force in North America
| With
the majority of Canada's vehicle
production taking place in
Ontario, the province's automotive
industry is taking a strong
lead as the biggest success
story in this part of the
G7 country. |
| |
| Future
Projects |
| Cdn
$1.1 billion |
In
May 2006, Linamar announced
an investment in automotive
power trains and related research,
development and plant investments |
| Cdn
$154 million |
In
May 2006, Honda announced
a Greenfield investment to
build a unique new fully integrated
engine facility in Alliston |
| Cdn
$100 million |
In
January 2006,Nemak announced
a project to launch a new
innovative engine block process
at its Windsor, Ontario facility
|
| |
|
With
the majority of Canada's vehicle
production taking place in Ontario,
the province's automotive industry
is taking a strong lead as the
biggest success story in this
part of the G7 country.
The
majority of Canada's automotive
production takes place in the
province of Ontario, producing
one in six vehicles built in North
America. Ontario is home to an
auto assembly industry, which
includes 12 assembly plants operated
by six of the world's largest
auto makers and 45,000 highly-skilled
workers, and an auto manufacturing
parts industry with more than
400 companies and 90,000 workforce.
In total there are 331,000 jobs
in Ontario's auto industry from
manufacturing to sales to service.
There are additional jobs available
in supplier industries such as
steel, plastics and glass. As
a result of this Ontario continues
to be the leading hub for automobile
production in the North American
industry.
Positive business and
investment climate
The Ontario government has been
at the forefront of Ontario's
auto industry. The government's
auto strategy has attracted more
than Cdn$7 billion in new investments
in the recent years in creating
and retaining thousands of jobs.
Ontario Automotive Investment
Strategy
It was in April 2004, the Ontario
government announced the Automotive
Investment Strategy in order to
accelerate innovation and global
competitiveness in the province’s
automotive sector. Cdn$500 million
was the investment needed over
a five-year program to train people
for the next generation of innovation
by supporting large-scale capital
projects that contribute to the
long-term competitiveness of the
auto industry. Automotive assemblers
and Tier One auto parts companies
are eligible for government investment
in strategic projects of at least
Cdn$300 million and/or 300 jobs,
if corporate innovation, advanced
skills training, public infrastructure,
improved energy efficiencies or
new environmental technologies
are involved. So far the project
has created over 400 new jobs
in Oshawa, Ingersoll and St. Catharines.
The project also supports auto
industry research, education and
training in Ontario.
Ontario’s competitive
advantages
The Ontario automotive success
story would not be complete without
reviewing compelling advantages
that clearly distinguish the province
as one of the most competitive
locations in the world for investment.
Most of the biggest auto makers
and parts suppliers have a presence
along Ontario’s major highway
(Highway 401), which travels for
820 km along southwestern Ontario
and provides easy access to international
markets. The towns dotting this
820 km highway are home to some
of the biggest carmakers and auto
suppliers around. They are represented
by a total of 12 assembly plants
along 401. 43% of auto manufacturing
employees have completed their
post-secondary education contributing
to the competitive advantage of
Ontario workforce on-the-job average
is 9 years in manufacturing, which
translates into lower training
costs.