The Financial Post reports in its Thursday, Sept. 28, edition that most Canadian trade sectors have bounced back after the pandemic, but the auto industry continues to struggle.
The Post's Marisa Coulton writes that Statistics Canada analyst Benoit Carriere says the industry has suffered multiple blows in recent years, says. Though exports of motor vehicles and parts were up 12.5 per cent in 2022, they were still below 2019 levels, Statscan said.
The Big Three automakers have posted profits topping $21-billion (U.S.) in the first half of this year. The Canadian industry has benefited from that bump since about 93 per cent of the country's car exports go to the United States.
McMaster University engineering professor Greig Mordue says, "It's inevitable that the UAW strike will affect Canadian parts producers."
The health of the U.S. auto industry generally has a knock-on effect for the Canadian sector because they are tightly integrated. However, Prof. Mordue says the impact of the strike on Canadian parts manufacturers will not be uniform, since it will depend on whether they are exposed to operations where workers are represented by the UAW.
© 2023 Canjex Publishing Ltd. All rights reserved.