Automotive sector benefiting as a whole from NAFTAClick image to enlarge

The Canadian automotive manufacturing industry is concerned about ongoing NAFTA negotiations in light of recent reports that the US is pushing for more stringent US auto content, according to media and industry reports.

According to a report by Inside US Trade, the US want to propose that cars and trucks must have at least 85 per cent North American content and at least 50 per cent specifically American content to qualify for duty-free status, according to a report by Inside U.S. Trade. 

In a CTV news report, Flavio Volpe, president of the Automotive Parts Manufacturers Association (APMA) stated "you can't have protectionism within a free trade agreement. It's an oxymoron."

Flavio Volpe Image: CBCClick image to enlarge

CTV News notes in its report that studies have found that Canadian-produced vehicles already contain 63 per cent American content, while those produced in Mexico contain 40 per cent, according to Volpe. But he said casting an American content requirement in stone would handcuff the industry's ability to pivot to suppliers in other countries -- including Canada and Mexico -- should they be able to offer a better product at a better price.

Volpe also noted in a Globe and Mail opinion piece that North America's automotive sector as a whole has benefited from NAFTA.

"The North American automotive sector has benefited from the rise of skills, infrastructure and commercial activity in Mexico. This has resulted in a third global automotive manufacturing power in the NAFTA region. The emergence of Mexico has allowed for U.S. and Canadian manufacturers to count on Mexico’s competitiveness as their lower-cost jurisdiction to help bolster their fortunes against the rise of other global threats that boast such a partner. With Canadian firms operating 120 factories with more than 43,000 employees in Mexico, the future of our automotive industry is increasingly as interwoven with that country’s as it is with the United States."

Similar Articles

The factory of the future at FABTECH 2016

If anyone had any doubts about where the metal fabrication industry is heading in the future, FABTECH 2016 held recently in Las Vegas, NV, put those doubts to rest. 

Magna forming electric vehicle joint ventures in China

Magna International Inc. has announced that it is forming two joint ventures with Beijing Electric Vehicle Co. (BJEV), China’s biggest electric vehicle manufacturer, to engineer and build EVs in China.

Canadian auto suppliers get opportunity at Magna

Canadian automotive suppliers will have an opportunity to present their capabilities to Magna International on June 24 during the Canadian Innovation Fair at Magna's Troy, MI, facility.

Interested suppliers were asked to submit their applications earlier in June and were contacted by APMA if they had been selected.

The Consulate General of Canada in partnership with the Automotive Parts Manufacturers' Association (APMA) are being given an opportunity to showcase Canadian automotive capabilities at Magna's US facility. Canadian suppliers who apply for the opportunity, will be given the chance to meet with the company's purchasing and engineering managers.

Magna says it's interested in learning about new products, processes, materials or other innovations in the following areas: connected car (e.g. software, advanced camera vision); powertrain (e.g. alternate propulsion technologies); lightweighting (e.g. laser welded blanks, joining technologies); interior and seating systems; testing/production/material handling; and safety systems.

For more information, visit APMA online.

Welding group launches post secondary awards program

The CWA Foundation has introduced the Post Secondary School Awards program for Canadian welding students.

TRUMPF grows with Chicago expansion

TRUMPF plans to expand its operations with a new 50,000 sq ft facility in Chicago, IL, that will house a Technology Centre and a Centre for Excellence for Industry 4.0. The facility will be completed by mid-2017.

Stay In Touch

twitter facebook linkedIn