Auto industry needs more investment, says trade group (December 11, 2003)
The Automotive Parts Manufacturers' Association says the long-term prosperity of the Canadian automotive industry d...
December 11, 2003 by Canadian Plastics
The Automotive Parts Manufacturers’ Association says the long-term prosperity of the Canadian automotive industry depends in part on greater amounts of vehicle assembly investment in Canada by OEM car companies. The assessment was included in the trade group’s policy paper, "AMPA’s Strategic Vision for the Canadian Automotive Original Equipment Supply Industry", presented yesterday in Toronto and Windsor.
The policy paper noted that production of finished vehicles, parts and related services in Canada has been in decline since its peak 2000. While a portion of the decline is cyclical, the paper claims some of it is structural and needs to be addressed by the industry and government.
Sales of Canadian automotive parts companies have dropped to $34 billion in 2002 from a high of $36 billion in 2000. The AMPA believes greater vehicle assembly capacity is needed in Canada for suppliers to prosper because suppliers who are closer to vehicle assembly plants generally have the best chance of acquiring more business.