Canadian Auto Productivity Increases

The Canadian auto industry is still booming in spitein Oakville and Oshawa assembly plants have
predictions that Canadian auto buyers will slow downincreased by more than 60 percent. This increase in
this year. In fact, based on the trend, it is expected thattruck production though might seem contradictory to
Canadian auto sales will post an increase this yearthe demand for smaller vehicles. With more trucks
over 2006 figures. The reason for this is the continuingbeing produced, automakers will be forced to offer
healthy economy of the country.discounts for them in order to attract the attention of
Another indication that the country's auto industry is inauto buyers.
good shape is reported recently by The BusinessThe increase in productivity in the Canadian auto
Edge. According to the Ontario paper, the productivityindustry means that production of auto parts for
in the auto industry in Canada has increased moreCanadian consumers such as those at Starter
than in the United States. The facts were announcedCanada will also increase. The increase in production
by Scotiabank which is formally known as The Bankalso means that the increasing demand in the
of Nova Scotia.Canadian auto market will be met.
According to reports, the lead of the Canadian autoThe value of the loony may be increasing but analysts
sector over the United States' increased by eightfear that it will soon come to an end. But for now,
percent last year. In 2005, Canada leads the UnitedCanadian auto buyers are still buying more vehicles.
States by five percent. The reports stated that theWith a healthy economy, the number of people having
time required for workers in Canadian auto assemblysuccessful careers will be able to afford to buy new
facility to assemble a vehicle became better by 3cars.
percent. This increase is said to be 50 percent moreThis increase may put a stop to the trend which saw
than the increase in the overall economy of Canada.Canadian consumers buying their cars across the
Carlos Gomes, an auto industry specialist forborder. This strategy is used by consumers since in
Scotiabank, says: "The widening of Canada'scomparison they can buy cars in the United States
productivity lead in auto assembly reflects a recordcheaper.
$10 billion in machinery and equipment investment,The increased car buying in Canada is also the result
mostly robotics and automation, over the past fourof the discounts being offered by automakers to
years."consumers in the country. With more consumers
Gomes added: "Given the more than 40-per-centstaying away from large vehicles such as pickup
appreciation of the Canadian dollar, which has sharplytrucks and SUVs, automakers are faced with the
eroded the competitive advantage of Canada'sproblem of getting rid of their produced light trucks. The
manufacturing sector, rising investment in machineryanswer, of course, is offering discounts. With these
and equipment and ongoing productivity gains arediscounts, Canadian auto buyers are attracted to buy
crucial to ensure the competitiveness of Canada'sthese large vehicles. The healthy economy of the
manufacturing base."country though is what allows automakers to offer
An example of the increasing productivity efficiency indiscounts for their vehicles.
Canada, the Business Edge reported that truck output