“ Tuning into the BIG Picture” For Eastern Ontario Automotive Summit Belleville, Ontario October 19, 2006 Automotive Parts Manufacturers’ Association The Voice of the Automotive Original Equipment Suppliers in Canada
APMA is Canada’s national association representing OEM producers of parts, equipment, tools, supplies and services for the worldwide automotive industry.
APMA members and their subsidiaries account for 90% of the over $36 (CDN) billion production of automotive parts in Canada. (2005)
Who are we?
To engage in activities that promote the interests of automotive original equipment suppliers in Canada that enhance the economic welfare of our members and be the Voice of the Canadian automotive supply industry Mission Statement
APMA has an 18 person Board of Directors to provide industry focus and direction and to oversee operations of the association as well as standing committees to allow members to exchange information and deal with issues affecting their sector:
Marketing and Strategic Initiatives Committee
Human Resource Development Committee
Energy, Environment and Health & Safety Committee
Innovation and Technology Committee
Other Ad hoc Committees as needed
APMA has 7 full time staff members to administer the association
Improving supplier relationships, making assembly more efficient and safer, controlling cost to improve profitability (lower cost materials & logistics as well as design and test methods improvements).
Source: Automotive News - April 11, 2005 Top Auto Industry Issues
Source: CSM Worldwide Industry Model Count 2003-05 359 2006-08 385 2009-11 371 Automakers and suppliers need flexibility to assembly more models and parts for different platforms in the same plant Explosion of New Products
Compression = Compromise = $ Shorter Life Cycles The Challenge of Compression
World’s 8 th largest producer of motor vehicles (> 2.6 million units). Ontario produces more vehicles than anywhere else in North America.
Six OEM’s: 12 active assembly plants (+1 more in 2007) + a number of engine and drivetrain part plants and support facilities. Over $7 billion has been committed to Canada in past two years.
3 OEM engineering R&D centres including DaimlerChrysler Canada, General Motors Canada & International Truck & Engine-Navistar.
Hundreds of suppliers of parts at all tier levels including Magna, Siemens-VDO, Dofasco, Alcan, Dupont, Wescast Ind., Woodbridge, Solectron-Invotronics, NEMAK Aluminum, Ballard Power Systems, General Hydrogen, Stuart Energy Systems, Hydrogenics, Schukra, QSS, Ventra Group, AutoLIV Canada, Ventra, Delphi, Lear Canada.
Over 500,000 Canadians work in the auto industry - 1/7 jobs and 1/6 in Ontario. Workers here are highly skilled!
The auto sector generates 12-13% of Canada’s manufacturing gross domestic product and is the largest source of foreign exchange.
Canada’s Automotive Sector
Canadian Vehicle Production VS. Canadian Automotive Parts Shipments Canadian Vehicle Production (units) Canadian Automotive Parts Shipments (CDN $)
Motor Vehicle Assembly Manufacturing vs. Motor Vehicles Parts Manufacturing Statistics Canada Total Employment
Oshawa Oakville Brampton Alliston Cambridge Windsor St. Thomas Ingersoll Canadian Assembly Plant Locations Woodstock (opening 2008)
Canadian Assembly Plants * Solely Ontario Sourced ** New Vehicle Launch Lincoln MKX (2007) Ford Edge (2007) Fairlane (2008) Suzuki XL-7 ASSEMBLER PRODUCTS CAMI Chevrolet Equinox * Pontiac Torrent DAIMLER CHRYSLER Chrysler 300 * Dodge Magnum * Dodge Grand Caravan/Chrysler Towne & Country Dodge Charger * ** Chrysler Pacifica * FORD Freestar Crown Victoria / Grand Marquis / Town Car (2008) GM Buick Allure Chevrolet Impala Chevrolet Monte Carlo Chevrolet Silverado GMC Sierra Pontiac Grand Prix Camaro (2009) HONDA Acura CSX * /Honda Civic Hatchback Acura MDX * Honda Pilot * Honda Ridgeline * ** TOYOTA Toyota Corolla Toyota Matrix Lexus RX 350 Hino RAV 4 (2008)
Automotive Parts Manufacturers are mainly located in Ontario and Quebec Quebec Ontario Source: Ontario Ministry of Economic Development and Trade Source: Québec Ministry of Economic Development, Innovation and Export Trade Auto Part Sites by region 01 Bas St-Laurent (1) 02 Saguenay / Lac St-Jean (3) 03 Capitale Nationale (10) 04 Mauricie (4) 05 Estrie (22) 06 Montréal (38) 12 Chaudière-Appalaches (8) 14 Lanaudière (1) 15 Laurentides (10) 16 Montérégie (28) 17 Centre du Québec (4) ( ) number of companies located in each region Chicoutimi Québec Trois-Rivières Drummondville Montréal Sherbrooke Hull
Canada has world-class auto assembly and parts manufacturing operations. Powertrain, systems and assemblies Stackpole Machined components, modules, systems Linamar Stamped and hydroformed parts F&P Mfg. Brakes, suspension components, controls Arvin Meritor Steering, suspension components TRW Canada Chassis components Dana Canada Plastics, blow and injection molded ABC Group Air Conditioners Denso Canada Molded foam, interior trim, seating The Woodbridge Group Weather-stripping Waterville TG Die Castings Burlington Technologies Stamping, interior and exterior trim, powertrain components Magna International Parts Product Lines Some of the 550 Auto Parts Plants Auto Assembly - 12 Plants -
The Nature of the North American Automotive Industry Trade Flow
$60.0 B cars and trucks
$20.3 B parts, engines
Total: $80.3 B
$23.1 B cars and trucks
$33.2 B parts, engines
Total: $56.3 B
Source: Statistics Canada
Issues Facing the Automotive Original Equipment Supply Industry in Canada
Developing a diversified customer base
Securing a fair share of automotive investment in Canada
Seamless passage at the Canada – United States borders
Not a new concept – for our sector, the AutoPact of 1965 was the start.
FTA (late 80s)
NAFTA (mid 90s) – big change. High labour content (i.e. wiring harnesses, windshield wiper assemblies) went to Mexico. Benefits of NAFTA are not yet fully realized by the auto industry (non-tariff barriers, harmonization of regulations, border crossing logistics, etc.)
Need to find what our core competencies are and develop from there