Mixed results for Canada’s auto parts industry: report

Canada’s auto parts industry had a good year in 2012, especially in North America, India and South Korea, according to a Scotiabank report. The sector showed double-digit gains over the previous year, enough to put it in eleventh spot in the ranking of world auto part exporters. Canada ranked eighth on that list in 2007.

auto-parts-Canada-exports-imports-North-America-EDIWeekly
Canadian auto parts exports were up last year, but remain 20 per cent below the last peak in 2007, according to a Scotiabank report on the industry. Canada has not been successful in finding an export strategy for auto parts outside of North America, the report says.

However, outside of North America, the report says, auto parts exports were flat: fully 98 per cent of Canadian exports stay in North America. And Canada’s exports remain 20 per cent below where they were at the top of the previous economic cycle in 2007. The report says that this was one of the worst performances among the top auto parts exporting nations. US and global auto parts exports, in contrast, are more than 20 per cent above that cycle peak.

Canada lacks an effective strategy for developing markets outside of North America, the report says, and is more reliant on imported auto parts than the other top auto parts exporting countries. Each Canadian-built vehicle contains close to $15,000 in foreign-made parts, more than twice the global average of $7,400. Canadian-made vehicles have the highest content of imported parts among the vehicle-producing nations, the report says. This is largely due to the high volume of trade between Canada and the US, which in the auto parts sector amounts to about $40 billion a year. Engines are the largest auto part components imported into Canada.

Further, Canada’s share of global vehicle production has dropped “sharply.” In the 1990s, that share was one-third; today it is just 19 per cent.

Magna International, Canada’s largest auto parts maker, is being rated one of the top four stock picks on the NYSE with share earnings estimated at $1.54 for the current quarter. Revenue for the past twelve months has been $30.84 billion, according to benzinga.

Did you miss this?

Other Popular Stories

  • $26 Trillion needed over 13 years to power infrastructure for world's fastest growing economies
  • Manufacturing sector rebounded in February: Statistics Canada
  • BMW unveils i3, the electric car of the future
  • China Opens Solar Highway, Closes in Under a Week
  • Wind projects going ahead in Quebec, public not necessarily on board
  • Aerospace industry pleased with $1 billion funding in budget
  • Bombardier holds update on CSeries aircraft
  • Renewables poised for big growth in short term: IEA
  • GM restructuring goes forward with agressive job cuts in Ontario designed to save billions of dollars — at the same time they recruit new hires?
  • Canada will reduce oil and gas industry emissions
  • India interested in oil and gas as well as uranium from Canada
  • Japan setting records for new solar power installations
  • Wood groups praising new six-storey construction limit
  • Nissan sales surpass 100,000 for first time in Canada
  • Global car sales will set record this year: Scotiabank
  • Building permits shot up in May
  • Calgary tech company says radio frequency oil extraction tests were successful
  • Héroux-Devtek subsidiary to provide landing gear for Boeing 777
  • Tesla is now the number one valued carmaker in America, jumping ahead of GM
  • Growing Quebec aerospace industries will need skilled labour
Scroll to Top