Automotive - Sector Profile
The automotive industry in Canada has grown dramatically since the introduction of the Canada - U.S. Auto Pact in 1965. The Auto Pact, rendered redundant by the NAFTA agreement in 1994, allowed for tariff-free automotive trade. NAFTA extends this tariff-free automotive trade throughout North America.
Today, the Canadian automotive sector is the world's 7th largest and Canada's biggest contributor to manufacturing GDP (14% in 2001). The automotive sector directly or indirectly employs more than 500,000 Canadians. Over 90% of Canadian automotive production is shipped duty-free to the U.S.
The Mexican auto market is also open to Canadian automotive exports. With NAFTA, Canadian manufacturers get duty-free access to Mexico for all cars, trucks and auto parts.
Canada remains a world leader in automotive production with a combination of low cost and highly skilled labour, high productivity, excellent R&D programs and continuous capital investment.
London is the geographic centre of Southwestern Ontario and remains a desirable location for automotive manufacturers who recognize the importance of locating in the heart of Ontario's automotive cluster.
The reality of just-in-time delivery and increasingly lean modes of production emphasize the importance of strategic location. A London location for your manufacturing facility will put you in close proximity to the automotive centre of North America.
London has recently been selected as the new home for significant automotive investments made by German, Austrian and U.S. auto industry leaders. London will continue to pursue and cultivate growth in manufacturing to ensure that this important sector remains healthy and competitive.
