Auto Parts and Component Manufacturing

The automotive industry is a major contributor to the Canadian economy. It accounts for 12% of the manufacturing gross domestic product (GDP) and supports 171,300 jobs, according to Statistics Canada. For every job in auto assembly and parts manufacturing, seven others are created in related industries, such as steel, plastics and transportation. While enjoying significant growth throughout the 90’s, the industry expanded so much that it buoyed investment levels and international trade ratios. The industry can be said to have five general segments: vehicle assembly; auto parts and component manufacturing; motor vehicle body and trailer; authorized automobile network and automotive aftermarket. There are 14 high-volume assembly plants that produce cars, minivans, light trucks and 27 lower volume assembly plants that manufacture heavy duty chassis and vehicles. Latest available data from Industry Canada shows that there are at least 895 establishments involved in the manufacture of automotive parts, components and systems and the combined value of their shipments was C$32.7 billion (US$27.05 billion) in 2002 with 6% exported. After Japan and the US, Canada is the third largest exporter of automotive products, which are its biggest export earners, with almost C$96.8 billion (US$80.08 billion) worth exported in 2003.