More than any other country, Canadian-built vehicles seem to have an inordinate amount of foreign parts content, according to a study done by Scotiabank Economics.
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Tag: Canada
Canadians registered just under 172,000 new vehicles in April, more than in any April since 2008. Through the first quarter of 2013, auto sales in Canada were down 1.9%. Imports, by which we mean non-Detroit brands, were suffering the most. Including Toyota, Hyundai, Honda, and Kia, nine Asian brands had posted year-over-year declines at the end of March.
The latest round of bad news regarding the Australian domestic auto industry has shifted TTAC’s attention to Canada, another country burdened with some similar issues. If Australia’s own car industry is getting hammered, then how much longer does Canada have?
It’s no secret that Infiniti is looking to diversify its manufacturing footprint. As part of a broader Nissan strategy to localize production and escape the yoke of yen fluctuations, Infiniti will soon be setting up shop in China and at Nissan’s Sunderland facility in the UK. Next on the list is another North American site.
The end of Q1 2013 in the United States saw numerous competitors in the mid-size sedan segment duking it out for the Number 1 spot. North of the border, the situation followed a familiar pattern as well; the race for the sales crown was dominated by compact sedans, rather than mid-sizers.
We continue on our ‘what the XXX bought in 2012′ series. After going to China, Europe, Russia, India, Israel, Italia, Indonesia and France, today we cross the border to Canada.
Had enough already? Thought so, and it’s ok because you can check the best-selling models and brands in 172 additional countries and territories on my blog. Enjoy!
Back to Canada. And in 2012 a very important record was broken… Jump in to know more!
GM announced a $250 million dollar investment for the CAMI plant in Ingersoll, Ontaro. CAMI is the main production site for the Chevrolet Equinox and GMC Terrain (also known as the Theta crossovers), two of GM’s best selling models, and the investment comes amid uncertainty over the fate of CAMI itself.
Upon receipt of a multi-billion dollar loan from the Canadian government, General Motors signed a “Vitality Commitment”, essentially a covenant in the loan agreement between GM and Canada’s government, which guaranteed that a certain amount of GM’s North American production would remain in Canada. That number is widely reported as being 16 percent, while page F-69 of GM’s IPO filings outlines that the covenant is valid until GM repays its loan commitments or until December 31, 2016, whichever comes later.
While Oshawa has widely regarded as one of GM’s best plants in terms of producing high-quality vehicles, the future of GM’s Oshawa plant is looking increasingly bleak.
Our man Derek Kreindler lives in Canada. That means his life is enriched by things we Americans can only imagine, such as Tim Hortons and the phrase “Bob’s your uncle.” Also, politeness.
As per usual, press day at the Canadian International Auto Show was filled with automakers busying themselves with the “Canadian Premières” of their wares. Very little had not already been seen and what vehicles haven’t been shown are probably being saved for the New York or Geneva shows. This event fell on February 14th, meaning I also needed to rush and buy a Valentine’s Day item. Before I did, however, I put together some notable observations from the 2013 Maple Syrup & Hockey Canadian International Auto Show.
Every Canadian consumer knows that when it comes to new car prices, we get screwed. Yes, Canada is a small market with higher taxes. It costs more to do business here in part because the high distribution costs can’t be amortized over 300-odd million people. In addition, things like metric instruments further complicate things.
But then there’s the question of why a Toyota RAV4, built two hours outside of Toronto, costs $2,890 less in Hawaii than it does in Canada. Why does an Oshawa-built Camaro demand a $4,685 premium in Canada? Where does BMW get off charging a $19,300 premium in the Great White North for a 535i xDrive, a 38.9 percent increase over the U.S. sticker?
Toyota’s Cambridge, Ontario plant will have the honor of being the sole facility outside Japan to produce hybrid Lexus RX crossovers. The announcement came alongside plans for an investment of $34 million investment from the Canadian government.
Congratulations to the Big H; Honda managed to capture the top spot in Canadian passenger car sales for the 15th year running, while also earning the dubious honor-or, honour, as it would be spelled in Canada – of offering the slowest-selling vehicle in Canada.
The high cost of auto manufacturing in Canada isn’t solely an issue for domestic auto makers; Honda, which manufactures the best-selling car in Canada (the Civic) is grappling with this issue as well.
The Windsor Star spoke to Jerry Chenkin, Executive Vice-President of Honda Canada, who summed up the biggest issue with Honda’s Canadian production: (Read More…)
The Canadian government will put up $250 million as part of an “auto innovation fund”, a continuation of a 2008 program which the government claims led to over $1 billion in spending. (Read More…)
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