Home / Auto News / News article: Canada's Auto Sector Losing Ground To Mexico - AutoGuide.com News
 |  Nov 30 2011, 8:00 PM

Automobile manufacturing is a big part of the Canadian economy. 10 percent of the country’s manufacturing output is related to the auto industry.

Things have been changing for a few years already, and the future is not looking good for Canada.  Thanks to their lower labor rates and production costs, more and more car companies are looking to move their operations down to Mexico.

Currently, Canada accounts for 16-percent of production for North America, but since 2008 Mexico, has accounted for 20-percent, and that number will likely grow.

If the trend continues, Canadians might lose their jobs well south of their border. However, not all is doom and gloom for our northern neighbors as vehicle production increased in 2011 by 2-percent to bring a total of 2.1-million units produced.

General Motors is supporting the Canadian economy by announcing that the new Cadillac XTS sedan will be built in Oshawa, Ontario (where vehicles like the Camaro are already built), and Toyota Motor Corporation has announced that it will invest C$545-million to upgrade Toyota production facilities in Ontario.

[Source: Automotive News]