8 Signs That Ontario is Seriously Declining In Car Production

  1. After Auto-Pact was signed in the mid 1960’s, Canada was responsible for 20% of North American car production, reaching its peak in the 1980’s. It is now down to about 13% and is expected to be declining further still.
  2. Since 2000, five Canadian manufacturing facilities have closed and only one has opened.
  3. Auto industry employment has fallen by about 1/3.
  4. Since Mexico is part of NAFTA and their labour costs are about 1/8th to 1/10th of Canadian labour, Mexico now produces 20% of North American cars.
  5. With the Canadian dollar almost at par with the US dollar, Canada is losing competitive edge against US factories in Tennessee, Carolina and Alabama.
  6. A number of free trade deals with Europe, Japan and S-Korean.
  7. There are less incentives/subsidies by provinces, most notably Ontario.
  8. Far higher electricity rates, already the highest in North-America, and predicted to rise much further.

Invest where the growth is. Is it in the auto producing cities ?


More here for those inclined: http://business.financialpost.com/2014/08/23/were-fighting-an-uphill-battle-when-automakers-promises-end-canada-may-have-to-say-goodbye/



Yours Sincerely,

Thomas Beyer, President

Prestigious Properties Group

T: 403-678-3330 or 604-564-7673

F: 403-770-8885 E: tbeyer@prestprop.com