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.
The Windsor Star reports that Canadian made cars have an average of $15,000 worth of foreign parts content, compared to $11,000 in the U.S., $10,500 in Mexico and $10,000 in Western Europe. The global average is said to be $7,400.
Scotia’s chief economist Carlos Gomes cited engines as the costliest foreign component, stating
“Despite several top-notch engine plants in Canada, over 80 per cent of all vehicles built in Canada contain imported engines.”
Transmissions and electronic systems also rounded out the top 3, and Gomes noted that the lack of a strong base for these kinds of parts means Canada’s auto parts trade deficit will only expand in the future. Furthermore, the vast majority of Canadian auto parts are not exported, which doesn’t help matters