“London is so close to other major auto operations here. It has a leg up on supplying new Oshawa production.”
In addition to a favourable new trade agreement with Mexico and the U.S., there is strong demand for vehicles with high sales forecasts in 2022.
Ontario has become “more welcoming” to the industry, said Rebekah Young, an economist with Scotiabank.
“There is a business environment here now where (automakers) can make multi-year decisions. Federal and provincial support has influenced decisions.”
Young also said a consistently low Canadian dollar, valued at about 77 cents US, good relationships with European and Asian markets, where electric vehicles will be in demand, an educated workforce critical in developing EV technology and production, good immigration policies and an effective supply chain all work in Canada’s favour.
“There has been a lot of uncertainty in the U.S.,” she said. “It is good to see this turnaround, this reinvestment in the future.”
As for vehicle demand, sales in Canada may top two million by 2025 and U.S. sales may be about 17.5 million by that year as well.
“I see 2022 and 2023 as strong years,” Young said.
In 2001, about the time the Canada-U.S. Auto Pact was dismantled, Canada had 173,000 auto workers. At the depths of the auto crisis in 2010, Canada’s auto employment fell to just shy of 110,000.
In 2019, the last full year of data, Canada’s auto employment was about 134,000 but Unifor research director Angelo DiCaro believes that will hit 125,000 when figures are released next year and losses, including 1,500 jobs at Fiat-Chrysler in Windsor and 2,600 at GM’s Oshawa plant closing, are added.
Source: – London Free Press (Blogs)
