Ontario  


  Back to Previous Page

Ontario's Auto Industry

Driving the Future

Look who’s investing and why we’re...

JUNE ’06 TOYOTA BOSHOKU $57 MILLION NEW PARTS PLANT...

MAY ’06 LINAMAR $965 MILLION 5-6 NEW PARTS FACILITIES AND NEW TECHNOLOGY CENTRE...

MAY ’06 HONDA $135 MILLION NEW ENGINE PLANT...

MARCH ’06 TOYOTETSU $44 MILLION NEW FACILITY...

MARCH ’06 HINO $2.6 MILLION MANUFACTURING EQUIPMENT FOR NEW TRUCK PLANT...

FEBRUARY ’06 GENERAL MOTORS $188 MILLION PLANT RETOOLING...

FEBRUARY ’06 TOYOTA $263 MILLION PLANT EXPANSION...

JANUARY ’06 NEMAK $88 MILLION FACILITY EXPANSION...

DECEMBER ’05 DAIMLERCHRYSLER $634 MILLION FLEXIBLE ASSEMBLY AND R&D...

AUGUST ’05 INTERNATIONAL TRUCK AND ENGINE $223 MILLION

PLANT MODERNIZATION AND NEW R&D FACILITY...

JUNE ’05 TOYOTA $660 MILLION NEW MANUFACTURING PLANT...

MARCH ’05 GENERAL MOTORS $2.1 BILLION ENHANCED R&D AND MANUFACTURING FACILITIES...

OCTOBER ’04 FORD $763 MILLION FLEXIBLE MANUFACTURING PLANT AND R&D CENTRE

MAY ’04 GENERAL MOTORS $88.5 MILLION CAPACITY INCREASE...

MAY ’04 SHOWA $2.8 MILLION PLANT EXPANSION...

Driving the future

Contents

Fact ->

Ontario is North America’s automotive powerhouse. We have 14 assembly plants and 450+ auto parts manufacturers—and last year the value of their shipments was close to $90 billion.

Note: Every effort has been made to ensure the accuracy of the information in this publication at the time of printing. However, the programs referred to and the data cited are subject to change.

All figures are in US dollars unless otherwise noted. The exchange rates used are based on Bank of Canada annual averages.

Cdn $1.00 = US $0.877 (2006)
Cdn $1.00 = US $0.826 (2005)
Cdn $1.00 = US $0.763 (2004)

June’06...Toyota Boshoku

North America’s automotive powerhouse

Auto Part Sites Number of parts sites located in each region
Barrie 21
Belleville 9
Bracebridge 7
Brantford 14
Brockville 5
Burlington 34
Chatham 19
Cochrane 1
Cornwall 2
Goderich 3
Guelph 37
Hamilton 16
Hawkesbury 1
Kingston 2
Kitchener-Waterloo 52
Lindsay 2
London 37
Mississauga 97
Napanee 1
North Bay 1
Orangeville 3
Oshawa 17
Ottawa 3
Owen Sound 4
Perth 3
Peterborough 4
Port Hope 2
Renfrew 1
Sarnia 3
Sault Ste. Marie 5
Simcoe 3
St. Catharines 25
St. Thomas 12
Stratford 22
Sudbury 2
Toronto 145
Windsor 74
Woodstock 26

Throughout Ontario, world-leading companies collaborate with more than 150 university, college and public research centres to speed new discoveries and processes from the lab to the marketplace.

Top of the page

The best

In the increasingly competitive auto industry Ontario, Canada has emerged as North America’s success story.

We produce more vehicles than any other jurisdiction.

Investments by assemblers and parts manufacturers have topped $6 billion in the last two years alone and have averaged $2.6 billion a year for the past decade. New manufacturers from Asia, Europe and the U.S. are locating here all the time.

Fuelling our success

There are four key reasons why Ontario is the automotive jurisdiction of the future. We deliver:

a highly skilled and productive workforce

a research environment focussed on commercialization

a dynamic business climate that helps companies get up and running fast

access to the $13.8+ trillion North American market.

Collaboration as policy

Also helping to ensure we maintain our leadership position is the Canadian Automotive Partnership Council, a unique advisory group of industry, government, academia and labour that’s developed a blueprint for future growth.

We also have a $500 million (Cdn) Ontario Automotive Investment Strategy that supports investment in innovation, skills training and infrastructure and a $500 million (Cdn) Advanced Manufacturing Investment Strategy that provides interest free loans for up to five years to help manufacturers develop leading edge technologies and innovations.

If you’re an assembler or parts manufacturer, there’s no better place to be.
Come grow your business in Ontario.

“ONE OF ONTARIO’S STRENGTHS IS ITS COLLABORATIVE BUSINESS/GOVERNMENT ENVIRONMENT. OVER THE PAST SEVERAL YEARS THIS HAS BEEN THE DRIVING FORCE FOR THE CANADIAN AUTOMOTIVE PARTNERSHIP COUNCIL (CAPC), A FORUM CONSISTING OF INDUSTRY STAKEHOLDERS FROM MANUFACTURING, UNION, GOVERNMENT, SUPPLIERS, DEALERS AND ACADEMIA. CAPC HAS WORKED TO DEVELOP ACTION PLANS TO STRENGTHEN THE GLOBAL COMPETITIVENESS OF THE CANADIAN AUTO SECTOR WHICH IS CENTRED IN ONTARIO. WE’VE BEEN SUCCESSFUL IN ATTRACTING MORE THAN $6 BILLION IN NEW INVESTMENT AND IN OUTLINING A STRATEGIC VISION FOR A PROFITABLE AND VIBRANT CANADIAN AUTO INDUSTRY.”

Michael Grimaldi, Former CAPC
Co-Chair and Former President, General Motors of Canada

...$57 million ...new parts plant...

Top of the page


Ontario’s vehicle assembly sector revs up

Ontario’s assembly sector is on a roll, fuelled by a well-earned reputation for consistent quality, productivity and innovation.

Home to the world’s largest automakers

DaimlerChrysler, Ford, General Motors, Honda, Suzuki and Toyota all build vehicles in Ontario. We’re one of few jurisdictions that can make that claim. Last year our assemblers produced over 2.6 million cars—that’s one in six in North America—and exported 85% of them to the U.S. and around the world.

Attracting investment

International automakers are making major investments that are positioning Ontario as one of the best places anywhere to research, design, develop and manufacture vehicles.

Since October 2004, the big five have committed $5 billion in increased manufacturing and research and development capabilities. Honda is building a new $135 million engine plant near its successful Alliston facility. General Motors is spending $2.5 billion to improve its vehicle design and manufacturing capabilities at plants in Oshawa, St. Catharines and Ingersoll. DaimlerChrysler is investing $634 million to install new technologies at its Windsor facility. And Toyota announced a $263 million expansion to its new $660 million Woodstock facility—before the cement had even been poured.

Winning product lines

And Ontario facilities are capturing new product lines. Ford’s Oakville facility got the call to produce the 2007 Ford Edge and Lincoln MKX, with hybrid versions to come. CAMI, a joint venture between Suzuki and General Motors, has been selected to build the 2007 Suzuki XL7 in Ingersoll. And Toyota, which chose Ontario as the only site outside Japan to produce the luxury Lexus, will produce the 2008 RAV4 here as well.

North America’s Top Vehicle Manufacturing Jurisdictions
  State/Province 2005 Light Vehicle Production
1 Ontario 2,624,212
2 Michigan 2,476,123
3 Ohio 1,795,626
4 Missouri 1,147,896
5 Kentucky 1,109,480
6 Indiana 772,858
7 Tennessee 692,966
8 Alabama 479,465
9 Illinois 455,262
10 California 417,369

Source: Ward’s AutoInfoBank, Feb. 6, 2006

Made only in Ontario
Company Car Brand
CAMIChevrolet Equinox, Pontiac Torrent, 2007 Suzuki XL7
DaimlerChryslerChrysler 300C/Dodge Magnum, Dodge Charger, Chrysler Pacificia
FordFord Crown Victoria/Mercury Grand Marquis, Ford Freestar, 2007 Ford Edge & Lincoln MKX
GMCamaro, Chevrolet Impala, Monte Carlo, Pontiac Grand Prix, Buick LaCrosse/Allure
HondaAcura CSX, Acura MDX, Civic Coupe, Ridgeline SUT
ToyotaMatrix


...Oct’04...Ford...$763 million...flexible manufacturing plant...

Toyota spotlight

From the moment the first Corolla came off the assembly line in 1988, Toyota Motor Manufacturing Canada (TMMC) has been a success. The award-winning Cambridge, Ontario facility employs 4,300 workers who produce more than 300,000 Corolla, Matrix and Lexus RX330 models a year. In fact, Cambridge is the only plant outside Japan to build the Lexus, a tremendous vote of confidence in the company’s Ontario operation. Now, in another vote of confidence, Toyota has chosen Woodstock, a small town in the province’s busy auto corridor, for the site of its new North American assembly plant. Slated to be up and running in 2008, the $965 million flexible facility will have the capacity to build 150,000 units a year and will start by producing the RAV4 sport utility vehicle. “Ontario is a great place to build cars,” says TMMC President Ray Tanguay. “We couldn’t have expanded into Woodstock without access to a skilled labour pool, excellent transportation system and a very supportive Ontario government.”

“THE PROVINCIAL GOVERNMENT'S INNOVATIVE ONTARIO AUTOMOTIVE INVESTMENT STRATEGY HELPED FORD OF CANADA SECURE THE OAKVILLE ASSEMBLY COMPLEX (OAC) PROJECT, AN $877 MILLION INVESTMENT THAT WILL ADD A WORLD-CLASS FLEXIBLE MANUFACTURING FACILITY TO THE HEART OF ONTARIO'S AUTOMOTIVE MANUFACTURING FOOTRPINT. THANKS TO ONTARIO'S LEADING-EDGE TECHNOLOGY AND HIGHLY-SKILLED WORKFORCE, THE OAC PROJECT WILL NOT ONLY BE THE FIRST CANADIAN ASSEMBLY OPERATION TO BUILD HYBRID VEHICLES, BUT WILL ALSO INCLUDE A UNIQUE RESEARCH AND DEVELOPMENT CENTRE FOCUSED ON CONVERTING PLANT EMISSIONS INTO ELECTRICITY THROUGH FUEL CELL TECHNOLOGY.”

Bill Osborne, President and CEO,
Ford Motor Company of Canada

...Feb‘06...Toyota...$263 million...plant expansion...May’06...

Top of the page


It’s pedal to the metal for Ontario’s auto parts sector

Assemblers are demanding lighter, safer, more economical products and Ontario’s auto parts makers are rising to the challenge—which is why this sector is soaring.

A hub for auto parts manufacturing

There are 450+ innovative parts manufacturers in our auto corridor, including Ontario-based giants Magna, Linamar and The Woodbridge Group. And that number is growing all the time as we attract new suppliers from around the world like Toyotetsu, Transform Automotive, Aisin Canada and UBE Automotive.

Last year Ontario’s auto parts sector had shipments of $31 billion.

Rising investment

Like the vehicle assemblers, auto parts makers are investing in the province. Guelph-based Linamar Corp., which already has 22 facilities in Ontario, is pumping $965 million into the province to establish a technology and training centre and up to six new manufacturing facilities. Nemak of Canada is investing $88 million at its Windsor facilities to launch an innovative engine block process. And Toyotetsu is building a $44 million facility in Simcoe to provide stamped and assembled parts to Toyota.

“WE’RE AN INTERNATIONAL COMPANY WITH THE WORLD TO CHOOSE FROM, BUT WE SELECTED ONTARIO FOR OUR NEW $965 MILLION INVESTMENT BECAUSE, QUITE SIMPLY, IT’S THE IDEAL LOCATION FROM WHICH TO GROW OUR BUSINESS. ONTARIO OFFERS US THE BEST AND BRIGHTEST WORKERS WHO GIVE THEIR OPTIMUM EFFORT EVERY DAY. THE PROVINCE ALSO PROVIDES A WONDERFULLY INNOVATIVE ENVIRONMENT, PROXIMITY TO OUR CUSTOMERS AND A SUPPORTIVE GOVERNMENT THAT RECOGNIZES THE IMPORTANCE OF THE AUTO INDUSTRY. ONTARIO IS JUST A GREAT PLACE TO DESIGN AND MANUFACTURE AUTOMOTIVE PARTS.”

Linda Hasenfratz, CEO,
Linamar Corp.

Magna SPOTLIGHT

Magna International is marking its 50th anniversary in 2007—and the company has every reason to celebrate. What began as a one-man tool and die shop in a garage in Toronto, Ontario has become the most diversified automotive supplier in the world. Magna designs, engineers and manufactures modules and systems for virtually every auto manufacturer and every major brand worldwide. With sales of close to $23 billion in 2005, Magna employs more than 84,000 workers in 228 production and 64 engineering and R&D centres in 23 countries on five continents. What’s helped to make Magna the powerhouse it is today? “Ontario has been critical to our global success, ” says Co-CEO Don Walker, who notes that the company’s world-wide headquarters remain in Ontario. “It’s given us a highly-skilled and dedicated workforce, support for R&D and a stable, pro-business environment. It’s also a central location from which to operate a world-wide business.”

...Linamar...$965 million... Top of the page


People powered

Topping the list of reasons automotive manufactures choose Ontario is our workforce. That’s because vehicles are made by people, and as automakers the world over have discovered, ours are the best in the business.

Our auto workers are why Ontario facilities are consistent winners of both the J.D. Power and Associates Initial Quality Survey and the Harbour Report productivity survey. In 2006 two Ontario assembly plants ranked first and second in quality in North America out of 84 facilities. DaimlerChrysler’s Windsor plant captured silver and General Motor’s Oshawa No. 2 plant took gold for the second year in a row—less than a week after finishing second among all North American plants for productivity.

Ontario’s 135,000 autoworkers are:

well educated and skilled—43% have a post-secondary education

available—per capita we have more qualified engineers than any other G7 country

dedicated—on average, they stay with a company for nine years and that means reduced training costs for employers

wage competitive—the average base wage for a tool & die maker is $44,379/year in Ontario, compared to $45,952 in St. Louis, MO and $46,602 in Grand Rapids, MI.

We also produce a steady supply of industry-ready workers. Ontario’s 44 universities and colleges have thousands of students enrolled in degree and certificate programs in all facets of automotive design, engineering and production, as well as business management. And our extensive apprenticeship and co-op programs give students critical, real-world experience.

CAPE SPOTLIGHT

“Parts manufacturers tell us that the number one reason they invest in Ontario is our workforce,” says Robert Emptage, Dean of the Centre for Automotive Parts Expertise (CAPE). “With companies on a never-ending quest to reduce costs and improve quality, they need skilled, productive and dedicated workers who can rise to the challenge.” Those are the sorts of workers CAPE is turning out. Part of Georgian College in Barrie, CAPE was established in 1999 to produce the next generation of auto technicians, technologists and engineers. Programs include: computer numerical control (CNC), mold making and tool and die, environmental engineering technology, auto products design, electrical engineering and automated systems. Students learn on state-of-the-art equipment, much of it industry donated, including full-size robotic arms interfacing with actual production lines. CAPE also provides customized training for workers already in the industry. “For auto parts companies there’s no room for error,” says Emptage. “You’ve got to be the best and that’s what we imprint on our students’ minds.”

...5-6 new parts facilities...new technology centre...Dec’05...

“DAIMLERCHRYSLER KNOWS THE BENEFITS OF DOING BUSINESS IN ONTARIO—WE’VE BEEN PRODUCING VEHICLES HERE FOR MORE THAN 80 YEARS. ONTARIO GIVES US A HIGHLY SKILLED AND DEDICATED WORKFORCE, AN ENVIRONMENT CONDUCIVE TO INNOVATION AND A CENTRAL LOCATION IN THE NORTH AMERICAN AUTO INDUSTRY, WHICH IS PART OF THE REASON WE HAVE ANNOUNCED INVESTMENTS OF $2.1 BILLION IN ONTARIO OVER THE LAST FOUR YEARS. THE PROVINCE IS A KEY PART OF OUR NORTH AMERICAN OPERATIONS.’’

Steven J. Landry, Chairman,
DaimlerChrysler Canada


Building vehicles takes less time in Ontario
  North American assemply plant hours per vehicle, 2005
Midsize Cars
Segment Average 19.2
GM Oshawa Car Plants #1 & #2 17.1
Subcompact Cars
Segment Average 21.3
Toyota Cambridge North Plant 19.4
Midsize SUV’S
Segment Average 20.5
Honda Alliston plant #2 19.5

Source: Harbour Report 2006

Honda SPOTLIGHT

When a die used to stamp out steel body panels developed a crack, it looked like Honda in Alliston, Ontario would have to ship it back to Japan to be fixed. That would have meant a very expensive plant shutdown lasting two or more weeks. The stamping team at Honda Canada rolled up their sleeves, came up with a solution and worked overtime to repair the die themselves in a day and a half. “The talent and dedication of our workers is what keeps Honda investing here,” says Jim Miller, executive vice-president of Honda Canada. Miller points out that Honda’s Alliston facility has launched four new products without losing any production time because workers came up with creative ways of maintaining production while introducing the new models into the system. It’s paid off. Honda recently announced that it was building a new $135 million engine plant in Alliston, the company’s third manufacturing facility in Ontario, which will add 340 new jobs.

...DaimlerChrysler...$634 million flexible assembly and R&D...

Top of the page


Innovative Environment

The place to be for R&D Research and testing are essential to the development of new materials, products and processes that help keep automotive companies competitive.

Ontario has become the R&D location of choice for industry leaders like Toyota, General Motors, DaimlerChrysler, Magna, Linamar, Nemak and The Woodbridge Group.

Why? Because R&D talent is plentiful, costs are low— 11% lower than in the U.S. according to KPMG’s Competitive Alternatives 2006—and we offer companies the ability to acquire the rights to the intellectual property developed at our public research centres.

Where research and commercialization converge

The Ontario government is making R&D — and its commercialization—a priority.

Our R&D tax credits are among the most generous in the world. In fact, they can cut the cost of $100 in R&D to less than $41. And our definition of R&D includes new product development, development of new or improved materials and improvements to the manufacturing process.

Over the next five years we’ve committed $1.5 billion to support future-focused projects at our research and teaching institutions—to ensure they’re commercialized here.

We have thousands of researchers working on automotive-related projects at renowned university and college research facilities like the Centre for Advanced Materials and Manufacturing, the Integrated Manufacturing Technologies Institute and the McMaster Manufacturing Research Institute

Helping to commercialize research breakthroughs by connecting scientists with companies are Auto21, the largest of Canada’s Networks of Centres of Excellence, and the Centre for Materials and Manufacturing, part of the Ontario Centres of Excellence Inc. network.

Ontario’s R&D expertise

materials and manufacturing

powertrain, fuels and emissions–including fuel cell technologies

design processes

intelligent systems and sensors

photonics

intelligent highway systems

High Quality R&D for less
Country Rating Canada’s R&D Tax Treatment
Italy 129
Germany 129
France 123
U.K. 120
Japan 116
U.S. 115
Canada 100

Source: Warda, Jacek, Rating Canada’s R&D Tax Treatment, A 2003 Update.

In Ontario, R&D expenditures can earn a 20% Scientific Research and Experimental Development (SR&ED) tax credit. If the costs are part of a research contract with an eligible Ontario research institute, they may also qualify for a 20% refundable tax credit through the Ontario Business-Research Institute (OBRI) tax credit program. The result? The after-tax cost of a $100 R&D expenditure drops as low as $40.24.

Innovation Incentives for Large Manufacturers

Large Manufacturers R&D Expenditures at public, private or public-owned R&D expenditures R&D expenditures at eligible Ontario research institutes1
Gross expenditure $100.00 $100.00
Ontario - 20% OBRI tax credit 2   (20.00)
federal investment tax credit - 20% (20.00) (16.00)
Tax deduction 3
$80 x 34.12% (27.30)  
$64 x 34.12%   (21.84)
Ontario exemption of federal investment tax credit
Tax deduction 3
$20 x 12.0% (2.40)  
$16 x 12.0%   (1.92)
After-tax cost of $100 expenditures $50.30 $40.24


NOTES:
1 Eligible Ontario research institutes include universities, colleges of applied arts and technology, research hospitals and other entities in Ontario.
2 The 20% refundable Ontario Business-Research Institute Tax Credit.
3 Tax rates for manufacturers: Federal 22.12% plus Ontario 12.0% = Total 34.12%.

...March’05...General Motors...$2.1 billion...enhanced R&D...

MMRI SPOTLIGHT

More and more auto assemblers and parts manufacturers are turning to the McMaster Manufacturing Research Institute (MMRI) when they need help improving performance. Established in 1999, MMRI’s goal is to advance Canadian manufacturing through novel approaches, while creating highly knowledgeable and innovative employees for industry. Its 12 faculty and 135 graduate students tackle pretty much any challenge industry leaders present in state-of-the-art labs that include machining systems, metal forming, robotics and manufacturing automation, light metal casting and thermal processing. A case in point: when GM wanted to increase the productivity of its engine block machining, MMRI researchers went to work and developed an environmentally-friendly process that reduces machining time by 50%. “International companies like to do research here because of the quality of our work, the ability to leverage government funding and intellectual property conditions that make it possible for them to retain IP developed here,” says MMRI Director David Wilkinson.

“WE’VE BEEN A WORLD LEADER IN AUTOMOTIVE URETHANE TECHNOLOGIES SINCE THE EARLY 1960S. OUR SUCCESS IS DUE, IN LARGE PART, TO OUR COMMITMENT TO INNOVATION. WE INVEST MORE IN R&D THAN ANY OF OUR COMPETITORS— AND THE BULK OF OUR R&D IS DONE IN ONTARIO BECAUSE THE PROVINCE OFFERS US POWERFUL ADVANTAGES. ONTARIO HAS AN EXTENSIVE AND IMPRESSIVE RESEARCH INFRASTRUCTURE AND DELIVERS R&D INCENTIVES THAT ARE SECOND TO NONE. ADD TO THAT WORLD-CLASS UNIVERSITIES AND COLLEGES THAT TURN OUT EXCEPTIONAL MINDS WITH THE SKILL SETS WE NEED AND IT’S EASY TO SEE WHY WE’VE PROSPERED HERE AND WHY WE’LL CONTINUE TO CALL ONTARIO HOME.”

Robert Magee, CEO,
The Woodbridge Group

...June’05...Toyota...$660 million...new manufacturing plant...

Top of the page


An ideal investment climate

Minimizing risk and keeping costs down are essential for success—and Ontario delivers both. We also welcome foreign investment, as companies from all over Europe, the U.S. and Asia have discovered.

Husky spotlight

Pushed to produce lighter, more modular components without sacrificing safety and quality, manufacturers are turning to technology suppliers like Bolton, Ontario-based Husky Injection Molding Systems for help. Take Johnson Controls. The Milwaukee, WI-headquartered company needed a way to produce two-colour automotive door panels for Fiat’s new Grande Punto and do it economically. Husky’s innovative solution doubles output by using two molds in one machine, allowing left and right panels to be molded simultaneously. “It’s a unique solution for improving productivity,” says Jeff MacDonald, Husky’s vice-president for automotive. And Quadloc Tandem, as it’s called, is just one of a wide range of process technologies Husky has developed for automotive applications. “Ontario has an exceptional engineering talent base,” says MacDonald. “Our engineers are creative thinkers with the skills to bring new ideas to life.” Also contributing to Husky’s success: “Ontario is an automotive hub with hundreds of companies at different places in the value chain to collaborate with and that stretches our ingenuity.”

Fact ->

Ontario is North America’s automotive powerhouse.
We have 14 assembly plants and 450+ auto parts manufacturers—and last year the value of their shipments was close to $90 billion.

Ontario’s cost advantage

When it comes to core operating costs, Ontario offers a clear advantage.

KPMG’s comprehensive 2006 Competitive Alternatives study of international business costs reveals that Canadian auto producers have a 5% cost advantage over the U.S., 10% over Germany and 14% over Japan.

Part of that advantage is Ontario’s publicly funded health care system. Employee health care benefits cost Ontario auto manufacturers about half as much as their U.S. counterparts—6.8% versus 13.2%. That means an added cost per vehicle in the U.S. ranging from $480 for DaimlerChrysler to $1,000 for General Motors.

Streamlined regulations

We understand that companies want to get on with growing their business, which is why we make it possible for them to get up and running quickly. The necessary infrastructure—buildings, transportation, telecom—is in place. And our regulatory systems are streamlined. Business start-ups in Ontario require just two simple steps, compared to as many 20 in other industrialized countries.

We also fast-track immigration for key employees, delivering work visas within days of application.

manufacturing...May’06...Honda...$135 million...new engine...

Fact ->

Ontario’s combined (provincial and federal) general corporate income tax rate is lower than any U.S. auto manufacturing jurisdiction—and it takes just 3 days to establish a business in Canada, compared to 8 in France, 24 in Germany and 31 in Japan.

“IF YOU WANT TO GET AN ASSEMBLY PLANT UP AND RUNNING QUICKLY, YOU NEED HELPFUL LOCAL ECONOMIC DEVELOPMENT PEOPLE TO FACILITATE THE PROCESS AND AVAILABLE, SKILLED WORKERS WITH A POSITIVE, CAN-DO APPROACH. WE COULDN’T BE HAPPIER WITH OUR CHOICE OF WOODSTOCK. WE WERE ABLE TO LEASE A FACILITY THAT FIT THE BILL AND HAVE IT FULLY OPERATIONAL IN JUST FOUR AND A HALF MONTHS. THAT’S RECORD TIME. WHAT’S MORE, THE QUALITY OF THE PRODUCT HAS EXCEEDED OUR EXPECTATIONS. WE COULDN’T ASK FOR MORE.”

Hiroyuki Omori, President,
Hino Motors Canada

A growing economy

Our economy is robust—and it’s forecast to outpace the U.K., France, Germany and Japan over the next two years. We have low inflation, low interest rates and a favourable exchange rate. We’re also the only G7 country not running a deficit.

And with just under 12.5 million people Ontario is big enough to support a broad base of manufacturing and financial and business services—yet small enough that global investors can get things done quickly.

The good life

Canada has the best overall quality of life among the G7 countries—and the lowest cost of living.

We’re a multicultural society that welcomes people from around the world, so no matter where you come from, you’ll find a community in which you’ll feel at home.

We have top-class public school and post-secondary institutions and excellent, publicly-funded health care.

The choice of leisure pursuits is endless. Ontario has everything from sophisticated nightlife to relaxed cottage living.

Nemak spotlight

In January 2006 Monterrey, Mexico-based Nemak celebrated five years of operation in Ontario with the announcement it would invest close to $90 million to launch an innovative engine block process at its Windsor facility. The new process, which will be operational by the end of 2006, will make it possible for Nemak’s engine block to be used in more engine families—a move that will help secure the company’s leadership position in the aluminium engine components market. Nemak has seen its growth skyrocket from sales of $350 million in 2000, just prior to acquiring its Windsor facility, to $1.2 billion in 2005. “Our Windsor facility has played a significant role in our worldwide expansion,” says Robert Smillie, vice-president, Nemak Canada. “It’s provided us with workers with the kind of expertise we need and an ideal location from which to ship our parts to our customers across North America. We’ve also had strong government support, including a little over $5 million from the Ontario Automotive Investment Strategy, for this new project.”

plant...Jan’06...Nemak...$88 million...facility expansion... Top of the page


Unparalleled market access

With just-in-time delivery the norm, location matters—and Ontario’s is hard to beat. For assemblers and parts manufacturers eager to enter the lucrative North American market, Ontario provides the ideal base. And we’re well situated for doing business with Europe and Asia as well.

“WHEN BROSE NORTH AMERICA WAS LOOKING FOR A LOCATION FOR A NEW PRODUCTION FACILITY TO SERVICE ITS GROWING MARKET, THE COMPANY SPENT ABOUT A YEAR INVESTIGATING POTENTIAL SITES IN THE U.S., MEXICO AND CANADA. THE LIST OF CRITERIA INCLUDED A LOYAL WORKFORCE WITH THE RIGHT SKILL-SET, COMPETITIVE BUSINESS COSTS AND PROXIMITY TO THE U.S. MARKET. BROSE CHOSE LONDON, LOCATED IN ONTARIO’S BUSY AUTO CORRIDOR, BECAUSE IT DELIVERED ALL THAT, PLUS AVAILABLE SERVICED LAND AND A PRO-ACTIVE ECONOMIC DEVELOPMENT OFFICE THAT HELPED EVERY STEP OF THE WAY. BROSE HAS AGGRESSIVE PLANS TO GROW THE BUSINESS IN NORTH AMERICA AND THE LONDON FACILITY IS AN IMPORTANT PART OF THAT GOAL.’’

Stefan Fritzsche, Executive Vice-President/Plant Manager,
Brose Canada

When Mark Sweeney, Senior Principal of McCallum Sweeney Consulting, was invited to attend an automotive FAM tour hosted by the Ontario Ministry of Economic Development and Trade, he decided to go. “We do a lot of work in the auto industry and felt it was important to be better informed about Ontario,” he says. Sweeney’s Greenville, SC-based company, which provides site selection services for a blue-chip client list that includes Nissan, Mitsubishi, Michelin, Tower Automotive and Boeing, had never placed a company in Ontario because he and his clients believed that just-in-time delivery demands couldn’t be met. The tour changed his mind. “Not one assembler or parts manufacturer I spoke with has had a problem with just-in-time delivery,” he says, noting that he also learned a number of other important things, including how extensive Ontario’s auto industry is—and how experienced and skilled the workforce is. “I’m eager for an opportunity to place a company in Ontario,” says Sweeney.

Connected to global markets

Our vehicle manufacturers and parts suppliers are located along our auto corridor in southwestern Ontario—about a day’s drive from half the entire U.S. market. As part of NAFTA (the North American Free Trade Agreement) they have access to a $13.8+ trillion market, which allows Ontario products to enter the U.S. and Mexico duty-free when 62.5% of their content is manufactured here.

Our transportation infrastructure is extensive, sophisticated and integrated with the U.S. Fifteen road, rail and marine border crossings provide access to the American market. We have five international airports: Ottawa, Hamilton, Thunder Bay, London and Toronto’s Pearson International, where more than 65 airlines provide same-day service to 43 cities in the U.S. and 42 cities abroad. Over the next five years, we’ll spend more than $6 billion on upgrading highways, border infrastructure and other transportation projects to ensure that people, products and ideas flow freely.

We have same-day business access to Europe and evening overlap with Asia. Our cultural and business affinities with Europe and Asia smooth the way for international trade, investment and project partnerships.

And as one of the most multicultural societies in the world, we’re fluent in more than 100 languages, including French, Italian, Spanish, German, Japanese, Mandarin, Cantonese, Korean, Punjabi and Hindi—and that’s a definite advantage when you’re selling to the world.

Bottom line?

Ontario is uniquely equipped to meet the needs of the demanding automotive industry.
We have the people.The technology.
The market access.The connections.

...August’05...International Truck and Engine...$223 million...

Top of the page


We Can Help

Looking for a place to locate or expand your automotive business? Let us help you with:

the latest information on Ontario’s economy and business climate

province-wide site searching of available land and buildings

comprehensive profiles of Ontario municipalities

coordination of site selection and community visits

contacts with federal, provincial and municipal officials, utility companies, transportation firms and business facilitators.

or call us at:

1-800-819-8701 (North America)
00-800-46-68-27-46 (U.K. and Europe)

E:mail: info@2ontario.com
Website: www.2ontario.com

Connecting businesses in Ontario and throughout the world with the people, products and ideas that make Ontario “Canada’s Economic Powerhouse”.

Special thanks to the following organizations for providing photographs:

Brose Canada, Centre for Automotive Parts Expertise (CAPE), DaimlerChrysler Canada Inc. Ford Motor Company of Canada Limited, General Motors of Canada, Hino Motors Canada, Honda Canada, Inc. Husky Injection Molding Systems, Linamar Corporation, Magna International Inc. McMaster Manufacturing Research Institute (MMRI), Nemak Canada, The Woodbridge Group Toyota Motor Manufacturing Canada (TMMC)

plant modernization and new R&D facility...

For more information about investment opportunities in Ontario, please contact us at: www.2ontario.com

1-800-819-8701 (North America)

00-800-46-68-27-46 (U.K. and Europe)

Ontario Investment and Trade Centre
250 Yonge Street, 35th Floor
Toronto, Ontario,
M5B 2L7
CANADA

Phone: (416) 313-3400
Fax: (416) 360-1817
E:mail: info@2ontario.com Top of the page

 Back to Previous Page