The Globe and Mail‘s Greg Keenan reported some bleak news for Canada’s auto industry today, with Canada’s auto manufacturing output set to decline by as much as 25 percent by 2020.
While Canada built over 2.4 million vehicles in 2012, that number is expected to drop to 1.8 million by 2020, according to a report cited by Joe McCabe, president of AutomotiveCompass LLC, who spoke at a conference for the Automotive Parts Manufacturers Association of Canada.
Since 2010, auto makers have invested $42 billion in manufacturing, with Canada receiving a mere 5 percent of that. The biggest declines are expected to come at GM and Chrysler, with both companies moving key product out of their Canadian facilities. Production of the Chevrolet Camaro will move from GM’s Oshawa, Ontario plant to Michigan, while Chrysler’s axing of one of its minivan nameplates could see the end of a full three-shift schedule at its Windsor, Ontario plant.
GM is set to close its Consolidated Line at Oshawa next year, leaving only the Flex Line running. But no new product has been confirmed beyond 2016, when GM’s “vitality commitment” to the Canadian government runs out, and it is no longer obligated to keep a certain percentage of its vehicle production in Canada. No GM vehicle is exclusive to the Flex Line either, with the Buick Regal, Chevrolet Impala, Cadillac XTS, Chevrolet Equinox and GMC Terrain all built at other facilities as well as Oshawa, while GM’s Dan Akerson has stated that Canada is the most expensive location in the world to build a car.