Automotive News Canada - January 2018 - 12

12

* JANUARY 2018

Canadian Foreign
Affairs Minister
Chrystia Freeland
Blackberry
workers

Unifor
President
Jerry Dias

2017
THE YEAR IN REVIEW
Trade and technology were disruptive forces

BY KELLY TAYLOR

WINNIPEG CORRESPONDENT

AUTOMOTIVE EXPORTS TO THE
United States represent a US $84-billion industry in Canada, and are only
set to grow as pent-up demand is
expected to blow the roof off the U.S.
auto industry in coming years.
According to Export Development
Canada, automotive exports grew to
US $78 billion in 2015 and $84 billion
in 2016. In 2009, it was less than half
that. Moreover, the average age of
cars on the road in the United States
is 11 years, representing an unprecedented delay in new-car purchases
dating back to the recession of 2009.
All of which makes U.S. President
Donald Trump's demand to renegotiate the North American Free
Trade Agreement (NAFTA) Canada's
Number One automotive news story
of 2017.
The automotive industry - which
has seen production shift to Mexico
and has seen Ontario trading places back and forth with Michigan as
the top-performing region in North
America - remains one of several
key issues threatening to scuttle the
agreement.
The three countries - Canada,
United States and Mexico - left talks
in Mexico City in late November hav-

ing settled several technical issues but
remaining far apart on autos, dairy,
dispute resolution and a U.S. proposal
for a mechanism allowing for an easy
cancellation of the agreement.
"I think our approach is to hope for
the best, and prepare for the worst,"
Canadian Minister of Foreign Affairs
Chrystia Freeland, said outside the

House of Commons in Ottawa after
talks ended.
"Canada is certainly prepared for
any eventuality. As I've said, we want
a good deal, not just any deal."
Complicating the issue is the integration of the three economies, with
Canadian parts makers feeding U.S.
assembly lines, American parts mak-

ers feeding Canadian assembly lines
and some components crossing the
border several times during the process.
Automotive Parts Manufacturing
Association (APMA) President Flavio
Volpe told the Business News Network
in 2017 that a cohesive three-country
deal is critical for automotive manufacturing in all three countries.
"We've got Canadian companies,
American companies and Mexican
companies that are invested in all
three countries," he said. "So you
could be assembling a module in
Alabama that gets parts from Mexico
that sells to a consumer in Toronto."
"Automotive and aerospace are,
I think, unique in industry for having investments in all three countries
and we need free movement of goods,"
Volpe said.

CAMI STRIKE

Canadian Foreign Affairs Minister Chrystia Freeland, Mexico Economy Minister
Ildefonso Guajardo and U.S. Trade Representative Robert Lighthizer address
the media to close the second round of NAFTA talks in Mexico City.
(PHOTO: REUTERS)

One of General Motors' key
Canadian assembly plants, CAMI
Automotive in Ingersoll, Ont., was
struck for four weeks beginning in
September. It was triggered, according
to the union, by the transfer of GMC
Terrain production to Mexico and the
start of production of CAMI's other
product, the Chevrolet Equinox, at
two other GM plants that are also in
Mexico.



Table of Contents for the Digital Edition of Automotive News Canada - January 2018

Automotive News Canada - January 2018 - Intro
Automotive News Canada - January 2018 - 1
Automotive News Canada - January 2018 - 2
Automotive News Canada - January 2018 - 3
Automotive News Canada - January 2018 - 4
Automotive News Canada - January 2018 - 5
Automotive News Canada - January 2018 - 6
Automotive News Canada - January 2018 - 7
Automotive News Canada - January 2018 - 8
Automotive News Canada - January 2018 - 9
Automotive News Canada - January 2018 - 10
Automotive News Canada - January 2018 - 11
Automotive News Canada - January 2018 - 12
Automotive News Canada - January 2018 - 13
Automotive News Canada - January 2018 - 14
Automotive News Canada - January 2018 - 15
Automotive News Canada - January 2018 - 16
Automotive News Canada - January 2018 - 17
Automotive News Canada - January 2018 - 18
Automotive News Canada - January 2018 - 19
Automotive News Canada - January 2018 - 20
Automotive News Canada - January 2018 - 21
Automotive News Canada - January 2018 - 22
Automotive News Canada - January 2018 - 23
Automotive News Canada - January 2018 - 24
Automotive News Canada - January 2018 - 25
Automotive News Canada - January 2018 - 26
Automotive News Canada - January 2018 - 27
Automotive News Canada - January 2018 - 28
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