The Canadian Press in October reported about the forecast of continued decline of car production in Ontario. This is estimated to continue in the coming years unless the Canadian dollar drops in value or workers settle with more competitive wage concessions like those in the U.S. and Canada. A number of experts were asked about this debacle in the article.
Despite consistently high auto sales figures and renewed investment in a sector that spent years struggling because of the economic downturn, assembly plants in Canada aren’t seeing the upswing they should and production in Ontario isn’t growing in the way analysts had expected.
The high loonie, large government incentives for automakers to build plants in the U.S. and Mexico, as well as favourable trade agreements between Mexico and countries in South America, Europe and Asia have all hurt Canada’s chances to win production, adds Anthony Faria, an automotive expert at the University of Windsor.
Automakers also like to build vehicles close to their customers in the U.S., which gives American plants another advantage, while taxes along with land, construction and utility costs are also higher in Canada, he said.
The article further expounds on the reason Canada is losing in the battle against car production compared with the U.S. and Mexico. Labour costs remain a primary adversary, impeding the country’s competitiveness in the car industry. As the report highlights, despite the industry rebounding from the U.S. recession, it is alarming to see Canada lagging behind in car production.
This only goes to show that the effect of the economic downturn has been so great that it affected, even after years of recuperating, car production. So expect to hold onto your car for a long while, given that there won’t be as many new cars available in the coming years. If it starts to show its age, you can always bring it to reputable Oshawa fix auto services such as Aces Automotive.
While manufacturing and production of newer vehicles have constantly shown weakness in the past years, several sectors of the car industry still show resilience to cater to those who choose not to spend on a new car. Several services like an oil change in Oshawa are still in top form, keeping old cars roadworthy for the foreseeable future.
(Article Excerpt and Image from Car makers putting brakes on Canadian production, experts say.globalnews.ca, October 9, 2013)