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

  • Researchers claim micro-fluidics breakthrough with liquid metal pump
  • Canada's exports soared in June while imports fell
  • Manufacturing sales rose sharply in some sectors in January: Statistics Canada
  • Oil prices, production in Canada not likely to reach former levels again: CIBC
  • Car sales set records in November
  • Ford looking to use agave plant biomass to make green plastic for cars
  • Ontario Faces Uncertain Future with Carbon Tax
  • Shed a tear for science? University researchers in Ireland harvest electricity from tears
  • Wood groups praising new six-storey construction limit
  • Financial risks associated with emissions limits for Canada for oil and gas industries
  • Canada could lead the world in cleantech: report
  • Detect lung cancer with a nanotech breathalizer? It works, four out of five times, could revolutionize cancer screening
  • Samsung wind farm breaks ground in SW Ontario
  • USC Students Blast Rocket Speed and Height Records
  • Construction giant to revolutionize industry with 3D concrete printing
  • Steel industry welcomes anti-dumping investigation by federal government
  • Researchers fly first hybrid-electric aircraft with in-flight battery recharging
  • Canada Goose doubles production capacity with new Toronto plant
  • Little agreement on whether it works, but governments press ahead with infrastructure spending
  • Netherlands company to test plastic road construction
Scroll to Top