Automotive Competitiveness Review (ACR)

A new global economy based on knowledge and innovation is rapidly emerging. In the automotive industry, Canada has positioned itself as one of the world’s most successful and competitive countries for the production of vehicles and parts. The industry has continually adjusted to the changing global environment, and Canada is now the sixth largest producer of vehicles in the world. The industry is a major contributor to the Canadian economy, and is directly or indirectly responsible for one in seven Canadian jobs.

In 1996, together with all stakeholders in the automotive industry, the Government of Canada launched a review of the competitiveness framework within which this key sector operates. One major objective was to ensure that the business climate continues to support the automotive industry’s strengths so that it fulfils its potential to grow, innovate and create jobs. Another was to ensure that the economic environment remains conducive to future investment, thereby positioning this sector in the forefront of the new global knowledge-based economy. The government wanted to build on the long-standing, cooperative relationship with the automotive industry and other partners who have been working together to maximize innovation, trade, investment and the quality of human resources.

The Automotive Competitiveness Review (ACR), as the initiative became known, has benefited from the input and participation of all segments of this industry, the assemblers, the associations, the workers, the parts manufacturers and the retailers. Together they have taken a close look at the challenges and opportunities that the new global knowledge-based economy presents for this industry. They have confirmed that Canada provides an excellent business climate, that the industry is competitive and that it continues to prosper with production, employment and investment at record levels.

The ACR also confirmed that the past focus on innovation, human resources, trade and investment has paid off, but that the work is not finished. In a global economy, we all must continue to focus on these areas if Canada is to maintain its competitive position. The ACR lays out an agenda for the future in those areas where industry and government can work together to achieve a common objective.

I would like to thank the many individuals and organizations who have contributed to this review. We look forward to carry on our work together to ensure that this important sector of the Canadian economy continues to prosper.

I would like to recognize the contribution of the late Mr. Yves Landry, Chairman, President and CEO of Chrysler Canada Ltd. Mr. Landry, who served as co-chair of the Automotive Advisory Committee with Mr. Don Walker, President and CEO of Magna, played a key role in putting forward the industry’s views in the ACR. Mr. Landry was also a leader in the industry, showing by example what can be done to further research and development and skills training in Canada.

John Manley
Minister of Industry