As part of a new free trade agreement due to be signed with the European Union, Canada will remove its 6.1 percent tariff on imported vehicles from the European Union, while the EU will remove its 10 percent duties on autos and and its 4.5 percent duty on parts.
A brief memo from General Motors Canada confirmed that the Oshawa consolidated line, scheduled to close in 2014, will stay open until 2016. GM is citing strong market demand for the Chevrolet Equinox and the outgoing, Chevrolet Impala (sold as a fleet-only model) as a reason for the decision, but cautioned that “ All scheduling adjustments are subject to market demand”.
Under the terms of the bailout, GM must keep 16 percent of its production in Canada until it has repaid its loan obligations to the Canadian government, or until December 31, 2016. After that date, the future of Oshawa is uncertain.
GM Canada’s CEO is expressing apprehension over the way cheap auto loans are fueling vehicle sales in Canada.
The Detroit News is reporting that Ford Motor Co. will soon announce a ~$700US million investment in it’s Oakville, Ontario plant, where it assembles the Ford Edge and Lincoln MKX midsize crossovers. According to Toronto’s Globe and Mail newspaper, $135 million of that will come from the Ontario and Canadian governments, which recently divested some of their bailout related shares in General Motors. The investment by Ford follows commitments made to the Canadian Auto Workers, now under the banner of Unifor, to add 600 jobs to the Oakville facility. Read More >
GM and Unifor (the union formerly known as the CAW) have reached a tentative agreement for the 2,500 workers at the CAMI plant in Ingersoll, Ontario, which builds the Chevrolet Equinox and GMC Terrain.
Wired.com is reporting that the state of California has abruptly tabled legislation that might have allowed RFID (Radio Frequency Identification) chips to be embedded into the state’s drivers’ licenses. Privacy activists are hailing the suspension of this plan as a victory against government intrusion in people’s lives and believe that these chips, which are actually tiny radio transceivers that can be accessed over the open airwaves without the consent of the person carrying the document, will eventually be used to track people’s movements without their knowledge. Currently, three states, Michigan, Vermont and Washington, already have RFID chips in their licenses and are already sharing information collected by the DMV, including basic identity data and photos, with the Department of Homeland Security via a national database. Scary, right? Read More >
Canada’s auto industry grew 1.3% in June 2013, an increase of a couple thousand vehicles. No brand sold more often than Ford. No manufacturer sold more vehicles than Ford Motor Company. No June in history saw Canadians buy more vehicles than they did last month.
Ontario is home to a number of auto plants, both import and domestic, union and non-union, as well as numerous suppliers. None of them are so tightly intertwined as General Motors is with the town of Oshawa, about 40 miles from Toronto (though, as any area resident will tell you, it’s really 2 hours away, thanks to our horrendously inadequate infrastructure). For nearly a century, GM has been building cars in Oshawa in one form or another, as the plant has established a reputation as one of GM’s best, consistently building high quality cars, trucks and crossovers over the decades. But that tradition may be coming to a close by 2016.
Most estimates put the market share of manual transmission cars in the United States at less than 10 percent. Whether it’s a lowly Nissan Sentra or the mighty Porsche 911 GT3, it seems that Americans just do not want to drive a three pedal transmission. The die hard manual crowd, as vocal as they may be, can’t seem to get anyone to listen to them, for love or money. If only they knew that just a few hours north of Boston, there existed a land where automotive purity was considered as the full contact lap dance.
(Editor’s note: Despite being a close neighbor, ally, and NAFTA member, Canada usually receives short shrift when it comes to the counting of cars. TTAC is a prime offender. We cover sales in Europe, Japan, China, and of course America – but Canada? Our resident car counter Cain will now cover the Canadian market on a monthly basis. Any volunteers for Mexico?)
For the second time in what was predicted to be yet another year of growth for the Canadian auto industry, volume grew significantly in May 2013. January volume was down 2%. By the end of February, the market was off 2012’s pace by 3%. March’s decline wasn’t as bad, but through the first quarter, sales were still down 2%. After April’s 9% increase, auto sales in May reached their highest level in six years. Read 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.
Ford’s plan to ramp up production of their Ecoboost engines may negatively impact the Blue Oval’s Essex engine plant in Windsor, Ontario.
Shuffled off to the side of the Volkswagen display at the Canadian International Auto Show was this Golf, sporting a carbon fibre roof and side mirrors.