This presentation will discuss Automotive Market for North America - Production and Trade Balance - Sales - Employment/Wages - Electrical Car - Trump/Automotive - Trudeau/Automotive - Mexico / Automotive

1. Automotive
Market –
North America
–December 9,
2016
By: PaulYoung, CPA, CGA
Date: December 9, 2016

2. Presenter / PaulYoung, CPA, CGA
• 26 years in Corporate Finance
• CPA/CGA since 1996
• Educator for CGA/CPA
• SME – Financial Planning and Analysis Solutions
• SME – Risk Management Solutions
• SME – Process Improvements

3. Agenda
This presentation will discuss Automotive Market for North America
• Production andTrade Balance
• Sales
• Employment/Wages
• Electrical Car
• Trump/Automotive
• Trudeau/Automotive
• Mexico / Automotive

4. North American Production andTrade Balance
Canada / United StatesTrade ImbalanceTransportation Equipment
United StatesTrade ImbalanceTransportation Equipment (Express in millions $)
Source – Scotia Bank,Ward Automotive and BEA

5. Canada Automotive Sales
Source – DesrosiersAutomotive Consultants

6. North American Sales
Source – Scotia Bank,Ward Automotive and BEA

7. United States - Automotive Industry: Employment, Earnings, and
Hours
Source - http://www.bls.gov/iag/tgs/iagauto.htm

8. United States - Automotive Industry: Employment, Earnings, and
Hours
Source - http://www.bls.gov/iag/tgs/iagauto.htm

9. United States - Automotive Industry: Employment, Earnings, and
Hours
Source - http://www.bls.gov/iag/tgs/iagauto.htm

10. Electrical Car
• US Electric Cars Sales Up 44% In November — 1.1% Of US Car Sales!
Tesla Model S
Cost - $38,000
Source -
https://www.truecar.com/prices-
new/chevrolet/volt-pricing/
Units/Sold – November
2016 – 3,000 Source
Source:
https://cleantechnica.com/2016/12/03/uselectriccarssales44november11uscarsales/
ChevyVolt
Cost - $76,200 (USD) to $81,200 (USD
Source -
https://www.kbb.com/tesla/model-
s/2016/
Units/Sold – November
2016 – 2,531

11. Plug-in Stations
Source - https://www.plugshare.com/ More Plug-in stations are required in
both Canada and USA

12. Trump / Automotive
• “The changes under theTrump administration could include possible tariffs
that will raise prices on imported vehicles and parts, fewer subsidies for
electric cars and policies that discourage automakers from moving products
from American factories to Mexico. ”Source -
http://www.nytimes.com/2016/12/08/business/worried-auto-industry-braces-
for-change-under-trump.html?_r=0

13. Canada / Automotive
• “The federal and Ontario governments are actively discussing major investments in the
big automakers that could total hundreds of millions of dollars. Following the recent
conclusion of labour negotiations, the auto companies are now in talks with the
governments about investing in a sector critical to the Ontario and Canadian
economies.
• “Trudeau government has a particular interest in investments within the more-
technologically advanced and research-focused areas of the auto sector. Bains, whose
department is overseeing the creation of an innovation agenda that it hopes
will eventually boost the economy, said one of the key goals for the government is
making sure Canada is on the "cutting edge of the car of the future.“ ”Source -
http://thechronicleherald.ca/business/1421828-federal-ontario-governments-talking-
investments-with-canadas-big-automakers
– Notes: “Budget 2008 introduced the Automotive Innovation Fund (AIF), providing $250 million over
five years to support automotive firms' strategic, large-scale research and development (R&D)
projects to build innovative, greener, more fuel-efficient vehicles.On January 4, 2013, the Prime
Minister announced the renewal of the AIF, with an additional $250 million over the next five years. On
February 11, 2014, the Government of Canada announced an additional $500 million over two years
(2014–2016) to the Automotive Innovation Fund to support significant new strategic research and
development projects and long-term investments in the Canadian automotive sector.”
“”https://www.ic.gc.ca/eic/site/auto-auto.nsf/eng/am02257.html (Budget 2008 - Stephen Harper)

14. Mexico and Automotive
• “Mexican auto industry officials are lining up their arguments to
defend the North American FreeTrade Agreement against
President-elect DonaldTrump's campaign promise to renegotiate
the pact or throw it out altogether. ”Source -
http://www.autonews.com/article/20161204/GLOBAL/312059963/
mexico-prepares-its-defense-of-nafta