DesRosiers says Canadian auto production last year hit lowest level since 1967

TORONTO - DesRosiers Automotive Consultants says Canada produced simply over 1.1 million mild automobiles final yr for the bottom degree of manufacturing since 1967.

The low manufacturing numbers, down from 1.4 million in 2020 and shut to 2 million in 2019, got here because the auto sector globally was hit by a scarcity of semiconductor chips attributable to pandemic-related manufacturing points and a surge in demand for electronics.

Canadian manufacturing was hit particularly laborious as automakers prioritized chips for his or her extra worthwhile fashions like pickups and SUVs, pushing down Canada’s share of manufacturing to underneath 9 per cent.

Canada’s share of North American manufacturing has been on the decline for years, from 17 per cent in 2009 to 14.1 per cent in 2014 to round 10 per cent earlier than the pandemic.

DesRosiers mentioned Toyota led manufacturing among the many 5 massive automakers in Canada with about 427,000 items, whereas on the different finish of the spectrum GM produced about 36,500.

GM, nevertheless, did restart manufacturing in November on the Oshawa meeting plant it had closed in 2019, and simply this week introduced it had added a second shift to the plant that now produces the Chevy Silverado. The corporate additionally plans to retool its Ingersoll, Ont., operation this yr to provide electrical supply automobiles.

Andrew King, managing accomplice at DesRosiers, mentioned Canada’s auto trade goes by means of each short-term transitory difficulties and long-term structural change as crops announce revised mandates and corporations begin to embrace the wave of electrification.

“Whereas it appears unlikely that Canada will, within the close to time period at the very least, absolutely get better misplaced manufacturing floor, there does exists a transparent alternative to revitalize and adapt this critically essential sector.”

This report by The Canadian Press was first revealed Jan. 26, 2022.