Canadian Automotive Partnership Council Offers Strategic Path Forward for Industry and Government

OTTAWA, ONTARIO--(Marketwired - Nov. 26, 2013) - The Canadian Automotive Partnership Council (CAPC) met in Ottawa today to discuss key factors affecting the competitiveness of the Canadian auto industry. The framework for their discussion was a study that CAPC also released today: "A Call for Action: II." The document represents the collaborative effort of Canadian automakers, parts manufacturers and labour, and it provides a blueprint for sustaining a competitive automotive industry in Canada. It is a follow-up to the original "Call for Action" released by CAPC in 2004.

"The membership of CAPC is committed to ensuring the auto industry continues to provide high quality jobs for Canadians and serve as a catalyst for future economic growth," commented CAPC Chair and Magna International CEO Don Walker. "We believe that the combination of private and public sector actions we have put forward represents a clear and achievable path forward."

The 2013 report describes encouraging trends in the Canadian auto industry, as well as the challenges the industry confronts. It points out that even though automotive manufacturing in Canada has rebounded to near pre-recession levels, capital spending has dropped to levels not experienced since the 1980s. The report stresses the importance of securing investments in plants, people, and research and innovation. It also highlights the need for industry and government to work together to develop a clear message about why Canada is a good location for manufacturing investment. A series of recommendations are offered for both the private and public sectors.

"Canada's world-class automotive sector is a leader in employment, exports and quality products, which are key drivers of the Canadian economy," said the Honourable James Moore, Minister of Industry. "Our government is committed to the growth and innovation of Canada's automotive industry. From renewing the Automotive Innovation Fund to signing the Canada-EU trade agreement, which will see tariffs removed on products such as cars and trucks, our government is creating conditions to increase sales and directly benefit Canadian automotive manufacturers and businesses."

Since the original "Call for Action" was released in 2004, the Canadian automotive manufacturing industry has experienced significant upheaval. The dollar has soared, major industry players have been restructured, and transformational labour agreements in the U.S. have impacted the relative competitiveness of Canada within NAFTA.

"This is an industry that does not stand still," commented the Honourable Eric Hoskins, Ontario Minister of Economic Development, Trade and Employment. "Our government's actions over the past number of years demonstrate that we are prepared to partner with the industry to create investment and jobs. Today's competitiveness discussion is yet another demonstration of CAPC's value as a forum for government, industry and labour to chart a course for future growth of this critical manufacturing sector."

The Canadian Automotive Partnership Council (CAPC) is an industry-led organization whose mandate is to address the key competitive issues facing the Canadian automotive industry. Membership comprises the CEOs of Canada's five automotive assemblers, CEOs of Canada's leading parts suppliers, representatives of industry associations, the President of the Unifor trade union, the President of the University of Windsor, and provincial and federal ministers responsible for industry.

"Call for Action II" was prepared by CAPC's Competitiveness Committee, which is co-chaired by Ray Tanguay, Toyota Motor Manufacturing Canada and Toyota Canada Chair, and Rob Wildeboer, Executive Chairman of Martinrea International.

Membership of the Competitiveness Committee includes all five automotive assemblers in Canada, as well as parts makers and Unifor.

The full report is available at http://capcinfo.ca