Ontario's Auto Industry

Driving the future

Cars and trucks are BIG business in Ontario

produces more vehicles than any other North American jurisdiction—over 2.6 million in 2005

manufactures one in six vehicles built in North America

exports 85% of all vehicles to the U.S. and countries around the world.

North America’s Top Vehicle Manufacturer 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

43% of our auto manufacturing employees have completed their post-secondary education versus 27% in the U.S.

Industry-focused education produces a steady supply of workers.

Ontario autoworkers have helped capture 17 of the 49 North/ South American Awards for plant quality awarded by J.D. Power and Associates, including Gold and Silver in 2006.

The Place to be for R&D

Ontario’s auto industry is a leader in materials and manufacturing, powertrain, fuels and emissions, design processes, intelligent systems and sensors, photonics and intelligent highway systems.

Ontario has one of the most generous R&D tax credit programs in the world:

the after-tax cost of a $100 R&D expenditure is less than $41

R&D deductions can be carried forward indefinitely

more costs qualify for R&D tax credits in Ontario.

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

Unparalleled Market Access

NAFTA (the North American Free Trade Agreement) gives Ontario auto manufacturers access to a market that is huge (420 million people) and affluent ($13.8+ trillion GDP) and where products move freely across borders.

Our auto industry is concentrated in southwestern Ontario — close to the American border for easy market access.

Our transportation infrastructure is extensive, sophisticated and integrated with the U.S.

An Ideal Investment Climate

In their forecast of the global business environment through to 2009, the Economist Intelligence Unit (EIU) ranked Canada as one of the best countries in the world to do business, thanks to our openness for foreign trade and capital, high-quality infrastructure and opportunities within the North American marketplace.

Ontario is cost-competitive—in fact, the province offers auto parts makers a 5% cost saving when compared to U.S. counterparts according to KPMG’s Competitive Alternatives 2006.

The province’s $500 million (Cdn) Ontario Automotive Investment Strategy supports investment in innovative technologies, enhanced skills training and public infrastructure. To date, it’s leveraged $6+ billion in capital investment by major auto producers.

Our regulatory systems are streamlined, with business start-ups requiring just two simple steps, compared to as many 20 in other industrialized countries.

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

Look at who’s investing in Ontario.

International Truck and Engine, a leading producer of heavy trucks, recently invested $235+ million in Ontario to modernize its Chatham facility and establish an R&D centre to prototype and test leading-edge technologies for the next generation of heavy trucks.

Bloomsburg, PA-based Magee Rieter, which supplies fabricated carpet and acoustical floor systems, established its first satellite facility in London, Ontario in 2004. Why Ontario? Magee Rieter says it’s because of the province’s skilled and available workforce, proximity to customers and similar business culture to Bloomsburg, PA.

Transform Automotive, headquartered in Sterling Heights, MI, opened its first Canadian facility in London, Ontario in 2005. The advanced metal-forming supplier, which specializes in transmission components, cited the city’s highly educated workforce, existing infrastructure and geographic location in the heart of the North American auto industry as the main reasons for choosing Ontario.

We can help

Email: info@2ontario.com

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