North American growth creates business opportunities
North American automotive sales are forecasted to grow 10 per cent in the next decade, driving investment in the vehicle assembly and auto parts manufacturing operations and encouraging automakers and parts manufacturers to expand production. Furthermore, assemblers will be launching more new models in the next five years (Table 1 & 2).
Investment Opportunities
Canada offers business opportunities for systems integrators (Tier 1 and 2) and for those dealing with automotive electronics, drivetrain components, steering systems, and climate control and fuel systems. Canada’s strengths include:
- Tool, die and mould (TDM)
- Materials – plastics, light metals
- Vehicle assembly
- Engineering
|
Table 1: North American Light Vehicle Sales |
|
Year |
Sales |
|
1960 |
8.14 |
|
1965 |
11.79 |
|
1970 |
11.05 |
|
1975 |
12.32 |
|
1980 |
12.97 |
|
1985 |
17.49 |
|
1990 |
16.01 |
|
1995 2000 2005f 2010f |
16.41 20.30 18.31 20.27 |
|
Source: DesRosiers Automotive Consultants |
|
Table 2: Model Launches Per Year |
|
Period of Time |
Five-year Averages |
|
1991-1996 |
33.2 |
|
1997-2002 2003-2008f |
36.3 61.0 |
|
Source: DesRosiers Automotive Consultants |