Hyundai Auto Canada reached a settlement with consumers in a class action lawsuit over exaggerated fuel economy numbers among their Hyundai and Kia lineup of vehicles, paying a total of $46.65 million CAD ($41.85 million USD) in the deal, according to just-auto.
Imported vehicle sales by country. Source: Canadian Vehicle Manufacturers Association
Companies building cars in Canada are lobbying at the last minute to, kill an “imminent” free trade deal between Canada and South Korea that the automakers say would damage the Canadian auto industry and the greater Canadian economy. Ford Motor Co. of Canada Ltd. president and chief executive, Dianne Craig, said on Thursday that the U.S.-Korea trade agreement enacted in 2007 has been a “disaster” for auto makers. Craig urged the Conservative government not to make the same mistake as the United States.
“We understand that [the Canadian government] need[s] to look for what’s in the best interests of Canada,” Ms. Craig said in an interview with Toronto’s Globe & Mail. “But, frankly, autos are the greatest driver of GDP and we think we need to have a pretty strong voice in this conversation. This is not good for autos, which means it’s not good for the economy, which means it’s not good for Canadians.”
Canada and the European Union’s newly inked free trade agreement will eliminate the 6.1 percent tariff on imported vehicles, but one big obstacle remains: the lack of harmonization between Canadian and European vehicle standards. According to a report by The Globe and Mail, Mercedes-Benz Canada’s President is calling for an end to the differing standards, which feature unique requirements and add costs to Canadian vehicles.
November 2013 went down as the highest-volume November in the history of Canadian auto sales. It followed three consecutive years with November improvements.
The UAW’s troubles with organizing Volkswagen’s Chattanooga plants are well known throughout the auto world, but Unifor, the Canada union that was once known as the Canadian Auto Workers union, now claims that it has enough union cards to hold a vote on representation.
The land of Canadian Tire, Tim Hortons and Michelle Creber has yet another thing going for it: Their auto workers have a cost advantage over their two-tiered brothers and sisters down south according to a study from Toronto, Ontario-based Scotiabank.
As part of a new free trade agreement due to be signed with the European Union, Canada will remove its 6.1 percent tariff on imported vehicles from the European Union, while the EU will remove its 10 percent duties on autos and and its 4.5 percent duty on parts.
A brief memo from General Motors Canada confirmed that the Oshawa consolidated line, scheduled to close in 2014, will stay open until 2016. GM is citing strong market demand for the Chevrolet Equinox and the outgoing, Chevrolet Impala (sold as a fleet-only model) as a reason for the decision, but cautioned that ” All scheduling adjustments are subject to market demand”.
Under the terms of the bailout, GM must keep 16 percent of its production in Canada until it has repaid its loan obligations to the Canadian government, or until December 31, 2016. After that date, the future of Oshawa is uncertain.
GM Canada’s CEO is expressing apprehension over the way cheap auto loans are fueling vehicle sales in Canada.
Ford Oakville, Ontario, Canada Assembly Plant
The Toronto Star is reporting that Ford Motor Co. will soon announce a ~$700US million investment in it’s Oakville, Ontario plant, where it assembles the Ford Edge and Lincoln MKX midsize crossovers. According to Toronto’s Globe and Mail newspaper, $135 million of that will come from the Ontario and Canadian governments, which recently divested some of their bailout related shares in General Motors. The investment by Ford follows commitments made to the Canadian Auto Workers, now under the banner of Unifor, to add 600 jobs to the Oakville facility. Read More >
GM and Unifor (the union formerly known as the CAW) have reached a tentative agreement for the 2,500 workers at the CAMI plant in Ingersoll, Ontario, which builds the Chevrolet Equinox and GMC Terrain.
Wired.com is reporting that the state of California has abruptly tabled legislation that might have allowed RFID (Radio Frequency Identification) chips to be embedded into the state’s drivers’ licenses. Privacy activists are hailing the suspension of this plan as a victory against government intrusion in people’s lives and believe that these chips, which are actually tiny radio transceivers that can be accessed over the open airwaves without the consent of the person carrying the document, will eventually be used to track people’s movements without their knowledge. Currently, three states, Michigan, Vermont and Washington, already have RFID chips in their licenses and are already sharing information collected by the DMV, including basic identity data and photos, with the Department of Homeland Security via a national database. Scary, right? Read More >
Canada’s auto industry grew 1.3% in June 2013, an increase of a couple thousand vehicles. No brand sold more often than Ford. No manufacturer sold more vehicles than Ford Motor Company. No June in history saw Canadians buy more vehicles than they did last month.
Ontario is home to a number of auto plants, both import and domestic, union and non-union, as well as numerous suppliers. None of them are so tightly intertwined as General Motors is with the town of Oshawa, about 40 miles from Toronto (though, as any area resident will tell you, it’s really 2 hours away, thanks to our horrendously inadequate infrastructure). For nearly a century, GM has been building cars in Oshawa in one form or another, as the plant has established a reputation as one of GM’s best, consistently building high quality cars, trucks and crossovers over the decades. But that tradition may be coming to a close by 2016.
Most estimates put the market share of manual transmission cars in the United States at less than 10 percent. Whether it’s a lowly Nissan Sentra or the mighty Porsche 911 GT3, it seems that Americans just do not want to drive a three pedal transmission. The die hard manual crowd, as vocal as they may be, can’t seem to get anyone to listen to them, for love or money. If only they knew that just a few hours north of Boston, there existed a land where automotive purity was considered as the full contact lap dance.
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