Blame the Czechs. Not to mention the Spaniards, Koreans and Chinese. They’ve all surpassed Canada as exporters of automotive parts, says a report from Scotia Economics. Canada, ranked sixth as recently as 2007, has now slipped to 11th, says the report by analyst Carlos Gomes. Canada’s parts makers are seeing solid sales gains, with the best volumes since 2008, says Gomes.
But nearly all our parts are destined to assembly plants around the Great Lakes. Meanwhile, most of the growth in global auto production is taking place outside North America, but Canadian parts makers are neither shipping to those markets, nor opening overseas plants, says Gomes. The result is that Canada’s share of the global market is slipping. Canadian parts are little used outside of North America. On average, vehicles produced outside North America and Europe have only $40 worth of parts supplied by Canadian producers. By contrast, vehicles assembled in North America have about $1,500 worth of Canadian parts.
But nearly all our parts are destined to assembly plants around the Great Lakes. Meanwhile, most of the growth in global auto production is taking place outside North America, but Canadian parts makers are neither shipping to those markets, nor opening overseas plants, says Gomes. The result is that Canada’s share of the global market is slipping. Canadian parts are little used outside of North America. On average, vehicles produced outside North America and Europe have only $40 worth of parts supplied by Canadian producers. By contrast, vehicles assembled in North America have about $1,500 worth of Canadian parts.
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