Japan Automobile Manufacturers Association of Canada Annual Industry Review - 2018
Table of Contents Japanese automakers: A Canadian-made story 3 Bucking the trend 4 Openness is the engine that drives Canada 5 Japanese-brand vehicle & parts manufacturing plants in Canada 6 JAMA Canada member operations 8 Driving Canada: 50 years of economic contributions and growth in Canada 9 Report: The economic contributions to of the Japanese-brand automotive industry to the Canadian economy, 2001-2016 10 2017/2018 Auto plants in Canada 11 New & recent developments 2018 12
Japanese automakers: A Canadian-made story 3 Since Japanese automakers first entered the Canadian market in the mid-1960s, Japanese brands have played a vital and growing role in the success of Canada s automotive industry. This partnership continues to expand; in 2017, sales of Japanese-brand vehicles reached record volumes in Canada for the fourth year in a row. For the second consecutive year, over one million Japanese-brand vehicles were built here in 2017, representing 46 per cent of all light-duty vehicles manufactured in Canada. What s more, JAMA Canada members were the first and third largest light vehicle manufacturers in Canada last year. Hundreds of thousands of Canadians drive safe, reliable, environmentally-friendly Japanesebrand vehicles built right here in Canada. According to a 2017 study*, employment in Canada s Japanesebrand automotive industry has increased from about 50,000 to over 85,000 direct jobs from 2001 to 2016. In addition, including spin-off employment, the Japanese-brand auto industry currently supports employment for over 200,000 Canadians in local communities from coast to coast. 46% Nearly half of Canada s light vehicle production in 2017 7 Manufacturing plants, including light vehicles, trucks, and engines 2017 Highlights 1,238 Dealerships 2016 2017 1 million Produced 1 million vehicles for two consecutive years 64 Auto parts and related plants * The Economic Contributions of the Japanese-brand Automotive Industry to the Canadian Economy (2001 2016), by Greig Mordue & Brendan Sweeney, June 2017.
Bucking the trend Current Key Industry Metrics 2017 2016 % change Even as Canada s automotive industry has experienced volatility overall, Japanese-brand automakers continue to buck trends, increasing manufacturing and employment. The growth of trade, technology, and idea sharing between Japan and Canada has opened the door to substantial economic benefits as well as steady growth of both production and sales in Canada. 2 x production Top producers Japanese-brand auto manufacturing in Canada has nearly doubled since 2000 In 2017, Canada s first and third largest producers of light vehicles were Japanese brands Total Cdn light vehicle sales Japanese brands 2,038,798 719,807 1,948,899 680,314 4.6% 5.8% Market share 35.3% 34.9% Total Cdn light vehicle production Japanese brands 2,180,488 1,001,746 2,356,170 1,012,880-7.5% -1.1% Market share 45.9% 43.0% Canadian-built exports 795,980 816,585-2.5% Imports from Japan 188,591 163,433 15.4% Imports from NAFTA / EU nations 329,608 324,014 1.7% Total employment Direct & indirect 80,531 79,865 0.8% 4 18.4 million 1.4 vehicles Japanese-brand vehicles built in Canada since 1986 In 2017, Japanese automakers in Canada manufactured 1.4 vehicles for every Japanesebrand vehicle sold in Canada Vehicle/parts plants Head/regional offices Dealerships in Canada (est.) 33,025 2,201 45,305 33,215 2,144 44,506-0.6% 2.7% 1.8%
Openness is the engine that drives Canada 900 Canada is a net exporter of Japanese brand vehicles 4.7 million net vehicle exports since 1993 800 5 Built on a foundation of open trade since 1965, the auto industry in Canada continues to be highly trade-dependent and deeply integrated in North America. For example, almost three of every four Japanese-brand vehicles sold in Canada were built in NAFTA countries in 2017, with 28 per cent made in Canada. At the same time, almost 80 per cent of Japanese-brand production in Canada is exported, primarily to the U.S. In 2017, we exported over four times as many vehicles as we imported from Japan. This has made Canada a net exporter of Japanese-brand vehicles every year since 1993. 4.7 million Over 4.7 million more Canadian-built vehicles exported than imported from all other countries 4 times In 2017, Canada exported 4 times more Japanesebrand vehicles than it imported from Japan 28% 36% 8% 72% of Japanese-brand sales in Canada were built in NAFTA countries in 2017 Thousands 700 600 500 400 300 200 100 87 90 95 0 05 10 15 Despite over five decades of liberalized trade, the auto industry in Canada is currently being threatened by rising U.S. protectionism. Any import tariffs on autos and parts (including retaliatory tariffs in Canada) would have a significantly greater negative impact on the entire Canadian auto sector due to our heavy reliance on open trade, particularly under NAFTA. Exports from Canada Imports from Japan, U.S., Mexico, and E.U. Diversifying and expanding liberalized trade will enhance the prospects for global economic prosperity, as well as the goal of sustainable mobility. As Japanese-brand automakers and Canadians continue to develop a solid partnership built on shared values, our members remain committed to a vibrant, environmentally-friendly, and globally competitive auto industry in Canada.
Japanese-brand vehicle & parts manufacturing plants in Canada 6 BRITISH COLUMBIA 5 Delta Light vehicle, truck and engine production Auto parts Materials, machine tools, sub-assembly & services 51 Windsor 11 Sarnia Petrolia 12 Chatham Blenheim 31 44 ONTARIO Alliston Barrie 22 Newmarket Shelburne 26 Tottenham 10 Palmerston 32 Schomberg 30 20 Orangeville 24 58 Scarborough Listowel Arthur 28 Toronto 21 68 55 Elora 25 Mississauga 19 65 59 34 9 Elmira 48 Guelph 29 Milton 66 Oakville 62 54 50 56 Burlington Cambridge 2 64 17 45 23 33 Hamilton St. Catharines 38 Stratford 39 42 Brantford 47 37 61 Fort Erie 53 St. Marys 18 14 57 49 15 60 Woodstock London 52 Ingersoll 63 41 35 40 St. Thomas 3 43 16 46 Tillsonburg 67 4 Bradford 1 Simcoe 36 13 27 QUEBEC 8 Joliette 7 Waterville 6 Coaticook
7 Manufacturing employment in Canada Total 33,025 Vehicle Manufacturing 12,306 Auto Parts 18,120 Materials, Machine Tools, Sub-Assembly & Services 2,599 Light vehicle, truck and engine production 1. Honda of Canada Manufacturing (2 vehicle and 1 engine plant, Alliston) 2. Toyota Motor Manufacturing Canada (Cambridge North and South plants) 3. Toyota Motor Manufacturing Canada (Woodstock) 4. Hino Motors Canada, Ltd. Auto parts 5. Canadian Auto Parts Toyota (BC) 6. Waterville TG (Coaticook) 7. Waterville TG Inc. (Waterville) 8. Bridgestone Canada Inc. (Joliette) 9. NTN Bearing Mfg. Canada 10. F & P Mfg Inc. 11. TRQSS, Inc. 12. MSSC Canada 13. TS Tech Canada Inc. 14. Vuteq Canada Inc. 15. Bridgestone Canada Inc. 16. Freudenberg-NOK 17. Tasus Canada Corporation 18. INOAC Interior Systems LP 19. ABC INOAC Exterior Systems 20. Trimont Manufacturing Inc. 21. Listowel Technology Inc. 22. ACG Automotive Canada Inc. 23. Dyna-Mig, A Division of F & P Mfg., Inc. 24. Sanoh Canada, Ltd. 25. Jefferson Elora Corp. 26. KTH Shelburne Mfg. Inc. 27. Kumi Canada Corporation 28. Musashi Auto Parts Canada Inc. 29. Denso Manufacturing Canada, Inc. 30. Showa Canada Inc. 31. Waterville TG Ontario 32. TG Minto Corporation 33. FIO Automotive Canada Corp. 34. Toyota Boshoku Canada Inc. 35. Amino North America Corporation 36. Toyotetsu Canada, Inc. 37. Toyota Boshoku Canada Inc. 38. Aisin Canada Inc. 39. Hayashi Canada Inc. 40. Takumi Stamping Canada Inc. 41. Arvin Sango Canada Inc. 42. TG Minto Corporation - Stratford Plant 43. Howa Canada Manufacturing Inc. 44. Blenheim Interior Trim 45. THK Rhythm Automotive (St. Catharines) 46. THK Rhythm Automotive (Tillsonburg) 47. Mitsui Hi-Tec Canada Materials, machine tools, subassembly & services 48. Sanyo Canadian Machine Works Inc. 49. Canada Mold Technology Inc. 50. SMC Pneumatics (Canada) Ltd. 51. DJ Galvanizing 52. Coilplus Canada Inc. 53. Durez Canada Company, Ltd. 54. Maple Automotive Corp. (Cambridge) 55. Kintetsu World Express (Canada) Inc. 56. Horiba Automotive Test Systems Inc. 57. Toyota Tsusho Canada, Inc. (Woodstock) 58. Tsubaki of Canada Ltd. 59. NGF Canada Limited 60. Green Metals Canada, Inc. 61. Maple Automotive Corp. (Woodstock) 62. Toyota Tsusho Canada, Inc. (Cambridge) 63. Autrans Corporation Ingersoll Plant 64. Jervis B. Webb Company of Canada, Ltd. 65. KWE Guelph 66. Omron Automotive Technologies 67. Simcoe Parts Service Inc. 68. Nippon Express Canada
JAMA Canada member operations Type of operation 1. Head office A B C D E 2. Regional office / sales & service reps / parts distribution facility 3. Vehicle manufacturing & assembly plant 4. Parts manufacturing plant 5. Port / transportation facility 6. R&D A C British Columbia Ontario Hino: 2 Hino: 1, 2, 3, 4, 5, 6 Honda: 2 Honda: 1, 2, 3, 4, 5, 6 Mazda: 2 Mazda: 1, 2, 3, 4, 5, 6 Mitsubishi: 3, 4, 5, 6 Mitsubishi: 1, 2 Nissan: 2, 3, 4, 5, 6 Nissan: 1, 2, 3, 4 Subaru: 2, 3, 4, 5, 6 Subaru: 1, 2, 3, 4, 5, 6 Toyota: 2, 4, 5 Toyota: 1, 2, 3, 5, 6 B D Alberta Quebec Honda: 2 Hino: 2 Nissan: 2, 3, 4 Honda: 2 E Nova Scotia Honda: 2 Subaru: 2, 3, 4, 5, 6 Toyota: 2 Toyota: 2 Mazda: 2 8 Nissan: 2, 3, 4 Subaru: 2, 3, 4, 5, 6 Toyota: 2, 5
Japan Automobile Manufacturers Association Of Canada Driving Canada: 50 years of economic contributions and growth in Canada Japanese brands first came to Canada in 1965, and the first Japanese-brand auto manufacturing facility was opened in Canada in 1986. Since then, JAMA Canada members have continuously strengthened their commitment to investing in the Canadian auto industry, creating high-quality jobs and industryleading innovation. With a philosophy of, build where you sell, our contributions to Canada continue to grow. Annual Industry Review - 2018 In fact, as a result of the US Canada FTA (1989) and NAFTA (1994), liberalized trade in Canada has allowed us to `punch above our weight` by building more than we sell. Since 1986, a total of 18.4 million Japanese-brand vehicles have been manufactured in Canada, almost 2 million more Japanese-brand vehicles than have been sold in Canada since 1965. With the prospect of a successful modernization of NAFTA and continued trade diversification (such as CETA and CPTPP among others), the auto industry in Canada will have a vibrant and sustainable future. 9 Japanese-brand manufacturers are committed to growing this partnership through ongoing investment in vehicle and parts manufacturing, distribution, sales and service infrastructure, and employment growth. Unrivaled growth Japanese-brand auto manufacturing output in Canada has nearly doubled since 2000 16.5 million Japanese-brand vehicles sold in Canada since 1965 18.4 million Japanese-brand vehicles built in Canada since 1986
Report: The economic contributions to of the Japanese-brand automotive industry to the Canadian economy, 2001-2016 A 2017 research report prepared for JAMA Canada by Greig Mordue, PhD, and Brendan Sweeney, PhD, highlights the massive growth in employment across the Japanese auto sector as well as billions in economic contributions between 2001 and 2016. According to their research, growth of employment in Japanese-brand automotive firms has far outpaced growth in the wider Canadian automotive industry, which has experienced economic uncertainty and change overall. In fact, nominal employment in the Japanese auto sector in Canada has grown across vehicle assembly, parts manufacturing, and tire manufacturing, even as total employment in each of these industries has decreased. According to Mordue and Sweeney, direct and indirect employment in the Japanese-brand auto industry currently stands at more than 85,000 at vehicle and auto parts manufacturing, sales and service, and executive offices across Canada. If you include direct, intermediate and spin-off employment, the Japanese-brand auto industry supports more than 200,000 jobs across Canada. In terms of economic contributions in 2016, this translates to: $5 billion $1.7 billion 50% in earnings for more than 85,000 Canadians directly and indirectly employed by Japanese automobile brands in Employment Insurance premiums, CPP/QPP contributions, personal income taxes, and import tariffs that can be reinvested in infrastructure, hospitals and schools The five Japanese-brand car and light-duty truck assembly lines represent half of the ten car and light-duty truck assembly lines currently operating in Canada. 2001 2016 Change %Change Vehicle assembly 8,062 13,308 +5,480 +65.1% Automotive parts manufacturing 7,660 17,155 +9,465 +124% Tire manufacturing 1,200 1,300 +100 +7.7% New vehicle dealerships 32,145 51,799 +19,654 +37.9% Head and regional offices 1,600 2,116 +516 +32.3% Total 50,667 85,678 +35,011 +69.1% To view the full report please click here
2017/2018 Auto plants in Canada 11 HONDA of Canada Manufacturing (HCM) Location Alliston, Ontario Start-up November 1986 Cumulative Investment $4.7 billion Vehicles Built Plant 1: Civic Coupe/Sedan Plant 2: CR-V, Civic Si Engine Plant: 4 cylinder (2.0 & 2.4 litres) Employment: 4,200 Production 430,209-2017 Export: (export ratio) 319,201-2017 (74.2%) Annual Capacity: 400,000 vehicles & 260,000 engines (2 shifts) Toyota Motor Manufacturing Canada (TMMC) Location Cambridge, Ontario & Woodstock, Ontario Start-up November 1988 (Cambridge) & November 2008 (Woodstock) Cumulative Investment $8.0 billion Vehicles Built Cambridge North: Corolla Cambridge South: Lexus RX 350, RX450h Woodstock: Toyota RAV4 Employment: 8,000 + Production 571,535-2017 Export: (export ratio) 476,881-2017 (83.4%) Annual Capacity: 500,000 units (2 shifts) Location Woodstock, Ontario Start-up April 2006 Cumulative Investment $3 million (equipment only) at start-up Vehicles Built Class 4-7 medium duty trucks Class 4: 155 Class 5: 165, 195 Class 6: 258,268 Class 7: 338,358 Employment: 106 Production 2,680-2017 HINO Motors Canada, Ltd. Export: For Canada only Annual Capacity: 2,000 units (1 shift)
New & recent developments 2018 Japan Automobile Manufacturers Association Of Canada Annual Industry Review - 2018 12 Toyota Motor Manufacturing Canada (TMMC) in May announced a $1.4 billion investment in their Ontario operations with financial support of $110 million from both the federal and Ontario governments. The investment will support more than 8,000 jobs in southwestern Ontario, and will create 450 new jobs, as well as 1,000 new co-op placements. Toyota will also invest $200 million in Canadian research and development over ten years. Together, these actions will help maintain and create high quality, well-paying jobs for the middle class, and promote economic growth and long-term prosperity. Toyota s investment will bring a new advanced manufacturing platform to the company s plants in Ontario. Once complete, Canada will be the North American hub for the RAV4 and home to Toyota s largest hybrid vehicle production in North America. In late February 2018, TMMC celebrated their 8 Renesas Electronics (Advanced Driver millionth vehicle built in Ontario a blue Corolla Assistance Systems) completed a test track built at the Cambridge North Plant. facility in Stratford, Ontario in late 2017. At the new track, Renesas, a global semi-conductor Honda of Canada Manufacturing (HCM) manufacturer based in Tokyo, can test how its announced an investment of $492 million in chips manage low-speed maneuvers, parking 2017 to further modernize their manufacturing and reactions to obstacles, like pedestrians or facilities and make innovative upgrades other cars. The location is also ideal for testing possible. This includes building a state-ofhow autonomous vehicles perform in all kinds the-art paint shop that will reduce the GHG of weather conditions, such as snowy days emissions from the paint process by 44 per when road markings are not visible. Stratford cent, and further reduce their manufacturing is just a short distance from Renesas AV carbon footprint in Canada. Both the federal operations in Michigan, making it convenient for and Ontario governments are financially collaborating with its own team as well as their supporting Honda s investment in clean Ontario-based partners, including Waterlootechnologies at their manufacturing facility in based software maker BlackBerry QNX, Alliston, Ontario. WatCAR (Waterloo Centre for Automotive Hino Motors Canada introduced a prototype of Research), and the City of Stratford. the new Hino XL Series for the Canadian market at Truck World in April 2018. This will be Hino s first Class 8 heavy-duty truck in their line-up.
Japan Automobile Manufacturers Association of Canada 151 Bloor Street West, Ste 840, Toronto, ON M5S 1S4, Canada Tel: 416-968-0150 Email: jama@jama.ca Web: www.jama.ca