Leading Automakers’ Support Canada-U.S. agreement on Perimeter Security and Economic Competitiveness.

December 7, 2011 PRESS RELEASE

The Canadian Vehicle Manufacturers’ Association (CVMA) today welcomed the action plan announced by Prime Minister Stephen Harper and President Barack Obama on the shared vision for Perimeter Security and Economic Competitiveness.

“Today’s agreement will improve the efficiency of the integrated North American auto industry and consumers will benefit from vehicles that meet the most stringent and comprehensive safety and environmental standards in the world,” said Mark Nantais, President of the CVMA.

The automotive industry accounts for approximately $100 billion in trade between Canada and the U.S., representing almost 20% of total trade between the two countries. Of the more than two million vehicles produced annually in Canada, CVMA member companies account for 65% of all production, with 89% exported to our primary market, the United States.

The integrated North American automotive industry places great focus on transportation networks and border efficiency, ensuring its vital just-in time delivery system with its supply chain runs smoothly. If any of the 8,000+ parts needed for vehicle assembly do not reach the plant, production stops, resulting in lost revenue of $1.5 million per hour. The majority of automotive parts and components cross at the Windsor-Detroit gateway, the busiest border crossing in the world.

“Today’s announcement shows real progress on an important initiative that will have material benefits for our competitiveness and jobs in the auto industry”, added Nantais. “The industry is looking forward to working with the government to implement action plans that will address our need for alignment of trusted trader customs facilitation programs, border crossing procedures and vehicle standards between Canada and the United States.”

“The North American vehicle market is a single market where common products are desirable and demanded by consumers. Better aligned regulations make good business and public policy sense, which has led to a high level of cooperation between Canadian and U.S. regulators on vehicle safety and environmental regulations,” concluded Nantais. “Today’s agreement will allow manufacturers and governments to work towards greater harmonization of product standards which will reduce costs and make more advanced vehicle technologies more affordable for consumers. We must now work hard to execute on the action plans and drive results.”

About the CVMA

The Canadian Vehicle Manufacturers’ Association is the industry association that has represented Canada’s leading manufacturers of light and heavy duty motor vehicles for more than 80 years. Its membership includes Chrysler Canada Inc.; Ford Motor Company of Canada, Limited; General Motors of Canada Limited; and Navistar Canada, Inc. Collectively its members account for 65% of vehicles produced in Canada, operate 5 vehicle assembly plants as well as engine and components plants, and have over 1,300 dealerships. 125,000 jobs are directly tied to vehicle assembly in Canada.

Mark Nantais
Canadian Vehicle Manufacturers’ Association