Greater Toronto Area - The Greater Toronto Marketing Alliance

Greater Toronto Area
Value Proposition for European
Automotive Businesses
Your ideal destination for international expansion
Leader in Light Vehicle Production
l Auto Industry Profile
In Canada, the GTA is the #1 automotive cluster
servicing both domestic and international markets.
TOP VEHICLE MANUFACTURING JURISDICTIONS IN NORTH AMERICA
NUMBER
STATE/PROVINCE
1
Ontario
2,497,367
2
Michigan
2,227,251
3
Ohio
1,669,741
4
Kentucky
1,031,235
5
Missouri
984,353
6
Tennessee
699,352
7
Alabama
698,086
8
Indiana
657,535
9
Illinois
470,252
10
California
428,633
SOURCE: Ward’s Auto Info Bank
LIGHT VEHICLE PRODUCTION
Leader in Automotive Production
l Auto Industry Profile
The GTA is the 2nd largest
automotive cluster in North America.
METROPOLITAN AREA CMA & MSA
EMPLOYMENT
1
Detroit, MI
154,056
2
Greater Toronto Area, ON
49,000
3
Dayton-Springfield, OH
32,414
4
Grand Rapids-Muskegon-Holland, MI
32,284
5
Chicago, IL
28,956
6
Cleveland-Lorain-Elyria, OH
27,464
7
Los Angeles-Long Beach, CA
27,085
8
Flint, MI
26,717
9
Indianapolis, IN
23,308
10
Ann Arbor, MI
23,191
12 major auto
assembly plants
operated by five of
the world’s top
automakers.
More than 700
innovative parts
manufacturers.
48% of Ontario’s total
vehicle production is
based in the GTA.
Close to 1.5 million in
2009, and more than
85% are exported to
the U.S. and 40+
countries.
Industry leaders in Assembly & Parts Manufacturing
l Auto Industry Profile
“There will be increasing opportunities for Canadian
parts producers to expand their businesses. The free
trade agreements that Canada is in the midst of
negotiating – including the Trans Pacific Partnership
and the European Union – could be beneficial for
suppliers moving into these markets
Dina Ignjatovic, TD Economist
KEY AUTOMOTIVE PLASTICS
MANUFACTURERS
EMPLOYEES
The Woodbridge Group,
Canada
5,000
Decoma International Inc.,
Canada
4,500
ABC Group, Canada
4,000
Husky Injection Molding Systems
Ltd., Canada
3,000
Canadian General-Tower Ltd.
1100
CPI Plastics
660
The Canadian auto parts industry performed
well in 2012 in select markets including
Mexico, the United States, as well as
advances in sales to India and South Korea
KEY AUTOMOTIVE MANUFACTURERS
EMPLOYEES
General Motors of Canada Ltd.
13,000
Ford Motor Company of Canada
4,747
DaimlerChrysler Canada Inc.
3,500
AGS Automotive Systems
1,300
BASF
850
DANA
1,700
Faurecia Automotive Seating
2,000
Martinrea
3,000
Burlington Technologies
673
The Butcher Engineering Enterprises
800
Automodular
1,000
Stackpole Automotive
1,500
Van-Rob Stampings (Magna)
850
Solectron Invotronics
750
Matcor Automotive
620
Omron Dualtec Automotive
Electronics
400
SOURCE: Automotive Parts Manufacturers’ Association(APMA)
Assembly Plants in Canada- 2012
l Auto Industry Profile
There are 10 major motor vehicle assembly
plants, all in Ontario, and 4 in the GTA.
Major Motor Vehicle Assembly Plants - GTA
Location
Brampton, Ontario
Oakville, Ontario
Oshawa, Ontario
Oshawa, Ontario
SOURCE: Industry Canada, 2012
Products
Chrysler Canada Inc.
(68.49% owned by Fiat)
Chrysler 300, Dodge
Challenger; Dodge Charger;
Lancia Thema
Ford of Canada Ltd.
Ford Edge, Flex, Lincoln MKT,
MKX
General Motors of Canada Ltd.
Chevrolet Equinox, Impala
Buick Regal; Chevrolet
Camaro
Major Motor Vehicle Assembly Plants - Ontario
Location
Products
Ingersoll, Ontario
CAMI Automotive Inc.
Chevrolet Equinox; GMC Terrain
Windsor, Ontario
Chrysler Canada Inc.
(68.49% owned by Fiat)
Dodge Grand Caravan, Chrysler Town &
Country, Volkswagen Routan; Lancia
Voyager
Alliston, Ontario
Honda Canada Manufacturing Inc.
Honda Civic, Acura CSX
Alliston, Ontario
Acura MDX, ZDX, Honda Civic; CR-V
Cambridge, Ontario
Toyota Canada
Toyota Corolla, Matrix, Lexus RX350
Woodstock, Ontario
Toyota RAV4
Key Advanced Manufacturers in the GTA
l Auto Industry Profile
Large and Diverse Manufacturing Sector
l Auto Industry Profile
More than 280,000 manufacturing jobs in the GTA.
Automotive is a key subsector of the GTA’s
manufacturing industry
Corporate Tax Rates
l Auto Industry Profile
Competitive corporate income tax rates.
2010
2011
2012
2013
2014
Provincial (Ontario)
12%
11.5%
11.5%
11.5%
11.5%
Federal
18%
16.5%
15%
15%
15%
Total
30%
28%
26.5%
26.5%
26.5%
2012 Cost Index
New York City
103.4
Boston
101.2
Los Angeles
100.9
Chicago
99.3
Detroit
98.7
Miami
97.8
95.7
Toronto
90
92
94
96
SOURCE: [1] 2012 KPMG Competitive Alternatives [2] Ontario & Canadian Budgets
98
100
102
104
Cost Competitive
l Auto Industry Profile
A cost advantage in every sector
including the Automotive when
compared to any other G7 economy.
SOURCE: Invest in Canada, 2011 Edition
City of Burlington, HALTON REGION
Manufacturing Costs
l Auto Industry Profile
Ontario is one of the most
cost effective locations for
advanced manufacturers.
Ontario, 92.9
Alabama, 95.5
Texas, 98.2
North Carolina,
99.5
Michigan, 106.6
85
90
95
100
(Index Score - US=100)
105
110
Wind tunnel, OSHAWA
Competitive Manufacturing Labour Costs
l Auto Industry Profile
NOTE: Figures are in USD ($1 CAD = $0.95 USD)
SOURCE: Labour Market Information and Service Canada, 2009: May 2008 State Occupational Employment and Wages Estimates
Incentives for Auto Manufacturing
l Auto Industry Profile
SUPPORT
PROGRAMS/INCENTIVES
CRITERIA
HOW MUCH
Apprenticeship Training Tax
Credit (Ontario)
Corporations and unincorporated businesses
employing apprentices in certain skilled
trades during the first 48 months of an
apprenticeship program.
It reimburses employers for 35% of eligible
expenditures and small businesses 45%. The
maximum annual amount of the tax credit
is $10,000 per qualifying apprentice, during
the first 48 months of an apprenticeship
program
The Automotive Innovation
Fund
-A total private sector investment valued at
more than $75 million over five years
The Automotive Innovation Fund (AIF) will
provide $250 million over five years to
support automotive firms’ strategic, largescale research and development (R&D)
projects.
-Significant automotive innovation and R&D
initiatives to develop and build greener, more
fuel efficient vehicles
Scientific Research &
Experimental Development
(SR&ED)
Innovation Demonstration
Fund
Canadian businesses of all sizes and in all
sectors to conduct research and
development (R&D) in Canada that will lead
to new, improved, or technologically
advanced products or processes.
Your pilot technology must be in a clean tech
sub-sector: environmental, alternative energy
bio-products, hydrogen, and other significant
clean technology
It must also: be fully validated (evidence that
it works), be innovative, have strong
commercial potential be competitive and
advanced for North America.
Earn an investment tax credit (ITC) of 35%
up to the first $3 million of qualified
expenditures for SR&ED carried out in
Canada, and 20% on any excess amount.
You can get up to 50% of your total eligible
project costs to a maximum of $4 million.
Total government funding, including
Innovation Demonstration funds, cannot be
more than 66% of the total eligible project
costs.
Recent support from the Government
l Auto Industry Profile
NASG Canada Inc. (North American
Stamping Group, NASG) has been
awarded a large investment to expand
capacity at its Woodstock auto parts
manufacturing facility. Through FedDev
Ontario's Prosperity Initiative, NASG
Canada Inc. is receiving a repayable
investment of up to $2,488,875 towards
the total project cost of $10.9 million to
expand its operations.
June 24th, 2013
Ford Motor Co. The federal and
Ontario governments will contribute
about $135-million to an investment
Ford Motor Co. will make in its
Oakville, Ont., operations that will
secure the future of the company’s
only Canadian assembly plant and
3,000 jobs into the next decade.
Sept 16th, 2013
Exporting Auto Parts to the U.S.
l Auto Industry Profile
Joint ventures or partnerships with American companies can make operating in the U.S.
considerably easier for both goods and service exporters, because it can help resolve
problems related to professional accreditation, movement of personnel across the
border, and U.S. tax and legal status
 NAFTA (North American Free Trade Agreement) – Eliminated from tariffs
 Complex U.S. Tax – you will need legal and accounting professionals to
help you avoid unexpected tax liabilities as well as double taxation.
 A step-by-step guide to export:
http://www.cbsa.gc.ca/sme-pme/e-guide-eng.html
Exporting to the United States Guide http://www.tradecommissioner.gc.ca/eng/exporting-to-united-states.jsp
Let us help you succeed in the
Greater Toronto Area!
visit us at:
www.greatertoronto.org