(November 29 – 11:15 ET) – Canadian motor vehicle production soared by 21 per cent in 1999. The auto sector accounts for nearly one-fifth of the country’s overall economic growth, according to Scotiabank’s latest Canadian Auto Report.
“With more than 92 per cent of Canadian vehicle assembly capacity located in Southern Ontario, Ontario is, without question, the main beneficiary of this rapid growth,” said Carlos Gomes, Scotiabank Economist and auto industry specialist. “Over the past decade, assembly capacity in the province has surged, alongside a competitive currency and lower compensation costs than in the United States. Rising capacity, improved productivity and record U.S. sales will lift Ontario vehicle output to a record 2.8 million units in 1999.”
According to the report, in 1999, Ontario will produce almost as many vehicles as Michigan – the largest vehicle producing state in the U.S. – where vehicle assembly capacity has been falling since the mid-1990s.
-IE Staff
For more please see: