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OANADlAN AÜTOMOTlvE SEOTOP
The automot|ve |ndustry |s Oanada`s |argest manufaotur|ng seotor and aooounts for
16.7 peroent of North Amer|oan veh|o|e produot|on, or 2.6 m||||on un|ts
1
. Oanada |s the
wor|d`s th|rd-|argest exporter of automot|ve produots, after Japan and the Ün|ted States,
w|th more than 84 peroent of the veh|o|es bu||t |n Oanada exported. Tota| revenues |n
2007 were $96.7 b||||on, wh||e export revenues were $70.5 b||||on
2
.
The Oanad|an |ndustry emp|oys 153,000 peop|e |n approx|mate|y 1,300 estab||shments.
Over the past 10 years, the auto manufaotur|ng seotor has attraoted |nvestment
pr|mar||y from Germany, Japan and the Ün|ted States. Wh||e emp|oyment and
|nvestment are oonoentrated |n Ontar|o, Quebeo and Br|t|sh Oo|umb|a have a|so
attraoted fore|gn |nvestment.
Key Capabi|ities
Research & development (R&Dï: ln 2007, oompan|es operat|ng |n Oanada oomm|tted
$524 m||||on to automot|ve P&D. Oanada`s oore strengths |n auto-re|ated |nnovat|on
|no|ude: meta| prooess|ng, advanoed mater|a|s, advanoed des|gn, v|sua||zat|on and
manufaotur|ng, as we|| as |nformat|on and oommun|oat|ons teohno|ogy.
Oanada has v|brant P&D o|usters and offers generous |nvestment tax ored|ts and
fund|ng to automot|ve oompan|es for P&D. ln add|t|on to oonduot|ng |ndependent P&D,
pr|vate oompan|es a|so partner w|th un|vers|t|es, oo||eges and pub||o researoh oentres
|n Oanada to undertake oo||aborat|ve researoh. Suoh organ|zat|ons |no|ude the AÜTO21
Network of Oentres of Exoe||enoe, the Nat|ona| Pesearoh Oouno|| and the meta|s and
mater|a|s |aborator|es of Natura| Pesouroes Oanada.
vehicle assembly: Oanada |s home to the seoond, th|rd and ffth most produot|ve ||ght
veh|o|e assemb|y p|ants |n North Amer|oa. Oanad|an assemb|y p|ants have earned a
g|oba| reputat|on for exoept|ona| qua||ty, w|nn|ng var|ous awards:
» Oanad|an assemb|y p|ants have won one-th|rd of a|| J.D. Power p|ant qua||ty
awards for North Amer|oa s|noe 1991.
» ln fve of the |ast seven years, Toyota and Genera| Motors |GMì p|ants |n
Oanada were rated the best |n the western hem|sphere |n the annua| J.D.
Power |n|t|a| qua||ty survey.
1 ward's Automotive 2 8tatistics Canada
Unless otherwise noted, all values are in Canadian dollars.
RECENT INVESTMENTS
IN CANADA
w 4OYOTA opened a new $1.1 billion
vehicle assembly plant in 2008,
creating 1,200 jobs in Woodstock,
Ontario.
w (ONDA opened a new $154 million
engine manufacturing plant in 2008, in
Alliston, Ontario
w &ORD announced a $730 million
investment in 2008, to upgrade
its engine plant and establish an
advanced powertrain R&D centre in
Windsor.
w 4AKAGI-ANUFACTURING created
nearly 100 jobs with a new stamping
plant in Ontario in 2007.
w $ENSO invested $64 million to expand
its auto parts plant in Guelph in 2007.
w 4OYOTA"OSHOKU invested $87 million
to open a new seating and interior
trim plant in Ontario.
w !ISIN3EIKIopened its second
auto parts plant in Ontario, creating
another 100 jobs.
w (INO-OTORSopened a diesel
truck assembly plant in Woodstock,
creating 45 new jobs.
LEADING MANUFACTURERS
IN CANADA
CAMl Automotive lnc. (GM-Suzukiï
Chrysler Canada lnc.
Continental AG (formerly Siemens vDOï
Denso Corporation
Ford Motor Company of Canada Ltd.
General Motors of Canada Ltd.
Honda Canada lnc.
Johnson Controls lnc.
Linamar Corporation
Magna lnternational lnc.
Martinrea lnternational lnc.
PACCAR of Canada Ltd.
Toyota Canada lnc.
TRW lnc.

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Ontario
Automot|ve assemb|ers and parts manufaoturers are mak|ng major |nvestments,
pos|t|on|ng Ontar|o as one of the best p|aoes |n the wor|d to researoh, des|gn,
deve|op and manufaoture veh|o|es and oomponent parts. ln faot, auto parts
manufaotur|ng sh|pments |n Ontar|o tota||ed $26.14 b||||on |n 2007, or 94.6
peroent of tota| Oanad|an output. A|so, |n 2006 two Ontar|o assemb|y p|ants
ranked frst and seoond |n qua||ty out of 84 fao|||t|es |n North Amer|oa, and aga|n
|n 2007, an Ontar|o p|ant oaptured seoond p|aoe.
Annua| oap|ta| |nvestment |n automot|ve manufaotur|ng has averaged $3.5 b||||on
over the past 10 years, |n |ead|ng o|usters suoh as Windsor, Oshawa, Waterloo
Region, London and Toronto. |ead|ng oompan|es |no|ude: Ohrys|er, Ford,
Genera| Motors, Honda, Toyota, Denso, ||namar, Magna and M|ohe||n, to name
a few. ln faot, the on|y Toyota p|ant outs|de Japan to produoe |exus veh|o|es |s |n
Water|oo Peg|on.
Ontar|o`s workforoe oompetes favourab|y |n terms of qua||ty and oost aga|nst the
best |n the wor|d, oons|stent|y w|nn|ng the J.D. Power |n|t|a| qua||ty survey and
the Harbour Peport produot|v|ty survey. As a reg|on, Ontar|o has more qua||fed
eng|neers per oap|ta than any G7 oountry. Of Ontar|o`s rough|y 135,000 h|gh|y-
sk|||ed autoworkers, 43 peroent have a post-seoondary eduoat|on, and on
average they stay w|th an emp|oyer for n|ne years.
Throughout Ontar|o, wor|d-|ead|ng oompan|es oo||aborate w|th more than
150 un|vers|ty, oo||ege and pub||o researoh oentres to speed new d|soover|es
and prooesses from the |ab to the marketp|aoe. He|p|ng to oommero|a||ze
breakthroughs by oonneot|ng so|ent|sts w|th oompan|es are AÜTO21, the |argest
of Oanada`s Networks of Oentres of Exoe||enoe, and the Oentre for Mater|a|s and
Manufaotur|ng, part of the Ontar|o Oentres of Exoe||enoe lno. network.
1 8tatistics Canada manufacturind shipment data, 2OO7
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Quebec
The Quebeo automot|ve seotor oompr|ses over 250 oompan|es and
emp|oys approx|mate|y 15,000 peop|e |n two ma|n market segments:
the or|g|na| equ|pment market |OEMì, and the seoondary market,
oompr|s|ng of rep|aoement parts and aooessor|es.
The automot|ve seotor br|ngs together |nternat|ona||y renowned
oompan|es |n Greater Montréal, |no|ud|ng P|o T|nto A|oan,
Meoaohrome and Paufoss Automob||e Oomponents Oanada.
Montrea|`s strong expert|se |n ||ght meta|s represents an unden|ab|e
oompet|t|ve advantage w|th |arge, outt|ng-edge researoh fao|||t|es
suoh as the lndustr|a| Mater|a|s lnst|tute |lMlì, the Oenter for App||ed
Pesearoh on Po|ymers |OPEPEOì at the Eoo|e Po|yteohn|que, and
Oonoord|a Ün|vers|ty`s Oenter for Oompos|tes.
lNvESTMENT |OOATlON BENOHMAPKlNG
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METHODOLOGY
Th|s benohmark|ng study assesses the oompet|t|veness of a number of Oanad|an o|usters
aga|nst oompet|ng |nternat|ona| bus|ness |ooat|ons. Based on an |nvestor`s perspeot|ve, the
researoh and ana|ys|s uses a representat|ve |nvestment projeot prototype |an automot|ve
oomponents produoer and assemb|er-see prof|e on page 5ì to assess or|ter|a that
oorporate deo|s|on makers typ|oa||y exam|ne when eva|uat|ng |ooat|on a|ternat|ves for fore|gn
|nvestment.
Th|s |nternat|ona| |ooat|on benohmark|ng exero|se was oonduoted by lBM-P|ant |ooat|on
lnternat|ona| |lBM-P|lì, a renowned g|oba| |ooat|on oonsu|tanoy. lBM-P|l performed
objeot|ve researoh to assess the oomparat|ve oost and qua||ty of do|ng bus|ness |n var|ous
|ooat|ons, s|mu|at|ng the approaoh used by |nvestors when soreen|ng oand|dates for
oorporate |nvestment projeots. The benohmark|ng study exam|ned 250 to 300 fnano|a| and
qua||tat|ve |ooat|on |nd|oators |n the assessment of eaoh |ndustry subseotor.
To assess the qua||ty of a |ooat|on`s operat|ng bus|ness env|ronment, data were oo||eoted
from a var|ety of souroes for the d|fferent subfaotors |n eaoh of the oategor|es featured |n the
operat|ng env|ronment tab|e |page 5ì. Data for the qua||tat|ve assessment were trans|ated
|nto oomparab|e soor|ngs |zero to 10ì for eaoh subfaotor us|ng a we|ghted sooreboard
approaoh. We|ghts were ass|gned to eaoh |ooat|on oategory and subfaotor to demonstrate
the|r re|at|ve |mportanoe |n the |ooat|on se|eot|on prooess. These we|ghts are speo|fo to
eaoh |ndustry subseotor and are based on lBM-P|l`s exper|enoe |n he|p|ng |nvestors make
strateg|o deo|s|ons when ohoos|ng |ooat|ons.
A h|gh-|eve| fnano|a| ana|ys|s was a|so oomp|eted to take |nto aooount major |ooat|on
sens|t|ve |nvestment and operat|ng oosts and revenues for eaoh representat|ve projeot
prof|e. Oash fow projeot|ons have been oa|ou|ated and d|soounted over a 10-year per|od,
|noorporat|ng ant|o|pated |nfat|on rates, to determ|ne the|r net present va|ue, and to assess
the proftab|||ty of the projeot |n eaoh of the benohmarked |ooat|ons.
lNvESTMENT |OOA

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lNvESTMENT |OOATlON BENOHMAPKlNG
REPRESENTATIVE PROJECT PROFILE
6£h£8AL 0£$08|PT|0h 0F
0P£8AT|0h$
Produot|on and assemb|y of
automot|ve oomponents
k£Y P80J£0T 08|V£8$
· Ava||ab|||ty of sk|||ed
personne|
· H|ghway network
· Aooess to markets
LA8008
|HEADOOÜNT = 700ì
Produot|on
Operat|ves: 422
Genera| Serv|oes
Speo|a||sts: 70
Eng|neers: 160
Management and
Adm|n|strat|on: 48
$AL£$
OAD $100,000,000

PLAhT Ah0 NA0h|h£8Y
OAD $50,000,000
P80P£8TY
S|te: 25 aores
Bu||d|ng: 220,000 sq ft
0T|L|T|£$
Power:
|Month|y Oonsumpt|onì
1,500,000 kwh
Gas:
|Month|y Oonsumpt|onì
1,800 MOF
0P£8AT|h6 00$T AhALY$|$
P80J£0T 8£00|8£N£hT$ F08 F|hAh0|AL N00£LL|h6

OPERATING ENVIRONMENT
6£h£8AL 80$|h£$$
£hV|80hN£hT
» 10%*
» Qua||ty of support from |ooa| government & deve|opment ageno|es;
» Bus|ness perm|tt|ng prooedures; » Ava||ab|||ty of fnano|a| support & |noent|ves;
» Oomp||anoe w|th proteot|on of pr|vaoy regu|at|ons, |nformat|on seour|ty, lP r|ghts;
» Eoonom|o and fnano|a| stab|||ty; » Po||t|oa| stab|||ty
*Factor catedor] weidht, correspondind location factors are ranked in order of importance.
L00AL P0T£hT|AL T0
8£080|T $k|LL£0 $TAFF
» 25%*
» Presenoe of exper|enoed automot|ve emp|oyees, |no|ud|ng manufaotur|ng
re|ated; » Overa|| s|ze of |abour poo|; » Overa|| t|ghtness |n the |abour market
|unemp|oymentì; » Presenoe of student popu|at|on
P8£$£h0£ 0F
|h00$T8Y/0L0$T£8 » 20%*
» Presenoe of |ndustry base; » Market prox|m|ty;
FL£X|8|L|TY 0F LA8008 &
8£60LAT|0h$ » 10%*
» Work|ng t|me regu|at|ons; » H|r|ng & fr|ng fex|b|||ty;
» lndustr|a| re|at|ons/att|tude of un|ons; » Work perm|ts
|hF8A$T800T08£ &
00NN0h|0AT|0h$ » 20%*
» H|ghway network & oongest|on; » Pe||ab|||ty of power supp|y;
» Qua||ty & re||ab|||ty of lT & te|eoommun|oat|ons; » Waterways and seaports;
» Pub||o transport; » A|r aooess
8£AL £$TAT£ » 10%* » Ava||ab|||ty of |arge |ndustr|a| s|tes
L|V|h6 £hV|80hN£hT » 5%* » Oost of ||v|ng; » Attraot|veness for young |nternat|ona| reoru|ts;
» Attraot|veness for expatr|ates
Canadian
Non-Canadian
OOST ASSESSMENT*
Living environment
Real estate
lnfrastructure &
communications
Flexibility of labour &
regulations
Presence of
industry/cluster
Local potential to
recruit skilled staff
General business
environment
QÜA|lTATlvE ASSESSMENT OF OPEPATlNG ENvlPONMENT*
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OANADA`S vA|ÜE PPOPOSlTlON
*Unless otherwise noted, draphs represent lBN-Pll assessment scores.
Montrea|, |ondon, Water|oo Peg|on and W|ndsor are some of
the most oost oompet|t|ve North Amer|oan |ooat|ons, offer|ng
h|gher proftab|||ty |eve|s than any of the|r Ü.S. oounterparts.
Th|s, oomb|ned w|th a super|or qua||tat|ve operat|ng bus|ness
env|ronment, makes Oanad|an auto o|usters some of the
most oompet|t|ve |ooat|ons |n the wor|d to |nvest, grow and
prosper. A|though some |ooat|ons, suoh as the Mex|oan o|t|es of
Aguasoa||entes, Pueb|a and Monterrey may offer h|gher |eve|s of
oost oompet|t|veness, the qua||tat|ve assessment of the operat|ng
env|ronment shou|d a|so be taken |nto oons|derat|on.
A better return on investment
ln North Amer|oa, fve Oanad|an o|t|es rank |n the top 10 |n the
qua||tat|ve assessment, under||n|ng Oanada`s so||d reputat|on |n
automot|ve manufaotur|ng. The strong presenoe of exper|enoed
manufaotur|ng and automot|ve |ndustry emp|oyees |n Ontar|o
oontr|butes to the h|gh overa|| qua||tat|ve soores for Toronto,
Oshawa, W|ndsor and |ondon. Montrea| a|so offers a |arge poo| of
sk|||ed staff to draw from.
Strong c|usters with a wea|th of experience
C$1 = U8$O.8G2 = NXh 1O.9
Canadian
Non-Canadian
OANADA`S vA|ÜE PPOPOSlTlON
Presenoe of |ndustry base |h|ghest-rank|ng o|t|esì*
Strong industry presence
Strong |ndustry presenoe |s a key |nvestment dr|ver for th|s
seotor, assess|ng the number of motor veh|o|e, motor veh|o|e
parts, motor veh|o|e body and tra||er manufaotur|ng oompan|es,
and a number of reoent transport equ|pment manufaotur|ng
|nvestments.
Oanad|an o|t|es rank h|gh|y among a|| North Amer|oan
oompet|tors due to the |arge number of estab||shments
ourrent|y manufaotur|ng motor veh|o|e-re|ated equ|pment.
Based on 2005 data from Stat|st|os Oanada, Toronto and
Montrea| are home to 326 and 147 motor veh|o|e part
manufaotur|ng oompan|es, respeot|ve|y.
A deep ta|ent poo|
Oanad|an auto hubs surpass many Ü.S. and Mex|oan
|ooat|ons |n terms of tota| emp|oyment oount for motor veh|o|e
manufaotur|ng-re|ated operat|ons, wh|oh has a s|gn|foant
|nfuenoe on the overa|| rank|ngs. A |arge popu|at|on of
exper|enoed automot|ve workers a||ows new manufaotur|ng
p|ants to ramp up the|r |abour foroe and oommenoe operat|ons
faster.
The |ooa| potent|a| to reoru|t staff |s the most |mportant
dr|ver, determ|ned by the s|ze, qua||ty and oharaoter|st|os
of the workforoe. The s|ze of the overa|| |abour poo|, the
manufaotur|ng worker poo|, the number of emp|oyees w|th
motor veh|o|e manufaotur|ng-re|ated exper|enoe, the s|ze of the
student popu|at|on and the t|ghtness of the |abour market a||
|nfuenoe the assessment of the ta|ent poo|.
The o|ty of Montrea| and Southern Ontar|o as a who|e, host
|arge poo|s of exper|enoed automot|ve workers ava||ab|e for
potent|a| |nvestors to reoru|t from. Toronto has over 30,000
motor veh|o|e parts manufaotur|ng emp|oyees, and W|ndsor
more than 10,000.
|ooa| potent|a| to reoru|t staff |h|ghest-rank|ng o|t|esì*

Canadian
Non-Canadian
Exper|enoed automot|ve emp|oyees |h|ghest-rank|ng o|t|esì*
Canadian
Non-Canadian
*Unless otherwise noted, draphs represent lBN-Pll assessment scores.
lnfrastruoture and oommun|oat|ons |h|ghest-rank|ng o|t|esì*
Wor|d-c|ass infrastructure
Aooess to markets and a good h|ghway network are key
|nvestment dr|vers. Th|s study oons|ders h|ghway and road
aooess, road oongest|on, a|rport and port aooess, pub||o
transportat|on as we|| as power and te|eoommun|oat|ons
re||ab|||ty.
Oanad|an bus|ness hubs rank h|gh|y among North Amer|oan
|ooat|ons due to the|r strong |nfrastruoture, oommun|oat|ons
networks and aooess|b|||ty by a|r and water. Oanada`s extens|ve
ra||way network and unoongested roadways are we|| |ntegrated
w|th those of the Ün|ted States, enab||ng oargo to move
effo|ent|y aoross North Amer|oa.
Outstanding qua|ity of |ife
ln the oompet|t|on to attraot g|oba| ta|ent, a h|gh|y rated ||v|ng
env|ronment |s an |mportant oons|derat|on; |t |s a|so another
advantage to |ooat|ng |n Oanada. The oost of ||v|ng and
the peroe|ved qua||ty of ||fe-the oountry`s attraot|veness to
|nternat|ona| reoru|ts and expatr|ates-are assessed us|ng
|nternat|ona| measures ||ke the Meroer Oost of ||v|ng Survey,
or|me rate stat|st|os and eduoat|on |ndexes.
Oanad|an |ooat|ons rank h|gh|y for qua||ty of ||fe, w|th the
metropo||tan reg|ons of Montrea| and Toronto topp|ng the
||st. Oanad|an o|t|es suoh as Water|oo, |ondon and Oshawa
oomb|ne a h|gh qua||ty of ||fe w|th a re|at|ve|y |ower oost of
||v|ng.
||v|ng env|ronment |h|ghest-rank|ng o|t|esì*
Competitive |abour costs
The oa|ou|at|on of the est|mated annua| |abour oosts for a
typ|oa| automot|ve oomponent manufaotur|ng operat|on shows
that Oanad|an |ooat|ons offer oompet|t|ve oost |eve|s oompared
to many Ü.S. oounterparts.
An |mportant oontr|butor to Oanada`s oompet|t|ve |abour oosts
stems from the |ower oosts of prov|d|ng emp|oyee benefts.
Oanada`s nat|ona| hea|thoare system means that most med|oa|
|nsuranoe oosts are pub||o|y funded, rather than pa|d by the
emp|oyer-wh|oh oan resu|t |n sav|ngs for emp|oyers.
Est|mated annua| |abour oosts |se|eoted o|t|esì*

OANADA`S vA|ÜE PPOPOSlTlON
Canadian
Non-Canadian
Canadian
Non-Canadian
*Unless otherwise noted, draphs represent lBN-Pll assessment scores.
Canadian
Non-Canadian
C$1 = U8$O.8G2 = NXh 1O.9
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Email: investincanada@international.gc.ca
Website: www.investincanada.com
This publication was prepared by lnvest in Canada in cooperation with lBM-PLl. The document covers a wide range of issues and is not intended to be a
detailed nor an exhaustive reference. Accordingly, before relying on the material herein, readers should independently verify its accuracy, currency, and
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in multiple languages including French. © Her Majesty the Queen in Right of Canada, as represented by the Minister of lnternational Trade, 2009.
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Catalogue Number FR5-38/2-2009E-PDF
lSBN Number 978-1-100-12044-7

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