For foreign investors in the automotive sector, Canada offers a strategic location in the heart of one of the world’s largest and most lucrative automotive markets. In 2013, Canada’s automotive manufacturing sector directly employed over 117,000 workers and generated revenues of $84.7 billion in 2013.Footnote 1

“ This investment is helping us find much needed capacity for global products and securing jobs and it is positioning Oakville, Ontario as one of the most competitive and important facilities in the Ford system ”

Joe Hinrichs, Executive Vice President of the Americas Ford Motor Company

  • Canada is part of fully integrated North American market with annual sales of nearly 20 million vehicles and annual production of about 16 million units.
  • According to KPMG, auto parts operations based in Canada typically enjoy an 11.2% labour cost advantage compared to their U.S.-based counterparts. Footnote 2
  • Under NAFTA and the newly announced free trade agreement with the European Union, Canada enjoys preferential access to some of the largest and most important automotive markets in the world. These trade agreements allow automotive investors in Canada to benefit from integrated global supply chains and seize new export market opportunities.
  • Canada has an established automotive supply sector comprised of many of the world’s largest auto parts companies. These companies have long-standing relationships with leading car manufacturers globally and provide a strong revenue opportunity for foreign investors.

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Footnote 1

APMA – Canadian Automotive Supplier Industry Briefing presentation; Industry Canada, Statistics Canada. (2013)

Return to Footnote 1 referrer

Footnote 2

KPMG, Competitive Alternatives 2014

Return to Footnote 2 referrer