Canada’s automobile industry may be on a long, slow slide to oblivion.
The federal budget Tuesday included a $100-million fund aimed at innovation in the auto-parts industry over five years, but no substantive strategy to keep Canada’s biggest single manufacturing sector from long-term decline.
Automakers have warned that without a coherent strategy, Canada will continue to lose new production capacity to Mexico and southern U.S., where wages are lower and governments offer fat financial incentives and streamlined bureaucracy for new investments.
There is a lot at stake. According to Ottawa’s figures, the industry, centred in Ontario, was worth almost $85 billion in annual revenue in 2013 and employed 117,000 people, roughly a third of them directly in building passenger and commercial vehicles.
It isn’t going to disappear tomorrow but there’s increasing evidence it faces shrinkage.
General Motors of Canada announced earlier this year it was closing one of its two Oshawa, Ont.,Read More »from Does Canada’s auto industry have a future?