Role

Chrysler, Ford and General Motors are the principal drivers of Canada's automotive industry.

The automotive sector is one of the most important industries in Canada. One in seven Canadians are either directly or indirectly employed in the automotive industry. It is one of Canada's most strategic business sectors and is the single biggest contributor to Canada's manufacturing Gross Domestic Product (GDP) (12% nationally; over 20% in Ontario alone).

The auto industry's export orientation (roughly 85% of vehicle production and 60% of all parts production is exported) represents a key source of foreign exchange and provides hundreds of thousands of Canadians with high-wage, high-skill manufacturing jobs.

CVMA members produced 1.8 million of the 2.56 million vehicles manufactured in Canada in 2007, roughly 71% of Canada’s total production.

Vehicle sales for 2007 reached 1.65 million units; CVMA members, Chrysler, Ford and General Motors accounted for roughly 53% of total Canadian light duty vehicle sales.

With almost $35 billion in parts shipments and $20 billion in exports in 2004, automotive parts manufacturers are a vital part of the Canadian automotive industry and economy. CVMA member companies are consistently the most significant purchasers of Canadian parts – accounting for purchasing over 80% of total Canadian parts production for their assembly operations across North America.

The automotive sector’s leading role in the economy benefits all Canadians in all provinces.

Employment

The auto sector directly employs over 550,000 Canadians across the country in 11 light-duty and 3 heavy-duty vehicle and assembly plants, more than 550 major component and OEM auto parts manufacturing operations, 3,949 dealerships, and aftermarket automotive product and service retailers. There are hundreds of thousands of additional Canadians whose jobs are in industries that support the auto industry including transportation and financial services, mining, steel, chemicals, oil and gas, aluminum, and high tech just to name a few industries.

Chrysler, Ford and General Motors along with their dealers directly employ some 102,000 Canadians and directly support an additional 50,000 Canadian retires.

Production

In 1964, prior to the signing of the Auto Pact, Canada produced 671,000 vehicles. By 2007, this number had reached 2.56 million, maintaining Ontario as the largest auto assembly jurisdiction in North America. Of this total CVMA members, Chrysler, Ford and General Motors were responsible for 73% of all production. Meanwhile, OEM parts production improved from less than $500 million to roughly $35 billion. Canada's vehicle production to sales ratio increased from 1:1 in 1964 to 1.53:1 in 2007. At the same time, its share of North American production has grown to just under 16% in 2007 from 7.1% in 1964.

Canada now ranks 9th in the world in automotive production.

Investment and Employment

Canada's automotive manufacturers have made nearly $40 billion in direct investment in Canada since 1990 with CVMA members accounting for more than $30 billion or 85% of this investment. Since 2002, CVMA members have announced investments of more than $8 billion in their Canadian production facilities and research and development operations. The positive impact on the Canadian economy is significant given the automotive industry's 3:1 economic multiplier; this means that for every dollar spent in the industry three more are spent in the economy.

Chrysler, Ford and General Motors drive investment in Canada’s indigenous parts industry by purchasing more than 80% of total parts production annually. OEM parts shipments are roughly $35 billion annually and employment nearly 100,000. Billions of dollars in advanced technology investments are made by the Canadian supplier community annually which focuses largely on supplying the Chrysler, Ford and General Motors. This same technology is subsequently diffused throughout the broader economy, increasing high-tech employment opportunities and the level and productive capacity of Canada's capital stock.

Exports and Employment

Automotive exports totaled roughly $70 billion in 2007 with over $67 billion sent to the United States. This maintained automotive products as one of Canada's most significant export industries. Lead by CVMA member activities in domestic production and part purchases, automotive exports accounted for 15.5% of total global exports and roughly 21.5% of total trade with the U.S.

Trade in finished vehicles with the U.S. resulted in a $25 billion trade surplus in 2007, which was 18.5% of Canada’s trade surplus with the U.S. and 57% of Canada’s total industrial trade surplus. Every $1 billion in exports creates or maintains 11,000 jobs.

Every $1 billion in exports creates or maintains 11,000 jobs. With 2002 exports of $68 billion secured over 1,000,000 jobs in Canada.