- North America's automotive powerhouse
- Ontario's assembly sector
- Ontario's parts sector
- People powered
- The place to be for R&D
- An ideal investment climate
- Unparalleled market access
- Bottom line
Ontario's auto corridor runs from Oshawa to Windsor, a distance of 260 miles - roughly two-thirds the distance from Munich to Wolfsburg or just over half the distance from Tokyo to Hiroshima. Our corridor provides world-leading assemblers and parts manufacturers with the concentration of resources they need to succeed, including a pool of skilled and dedicated workers, more than 24 public auto-focused research centres, available serviced land, an efficient transportation system - and easy access to the more than $15 trillion North American market.
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 Canadian dollars unless otherwise noted.
| Auto Part Plants | Number of parts sites located in each region |
|---|---|
| Barrie | 31 |
| Belleville | 11 |
| Bracebridge | 6 |
| Brantford | 14 |
| Brockville | 2 |
| Burlington | 29 |
| Chatham | 37 |
| Cochrane | 1 |
| Cornwall | 3 |
| Goderich | 6 |
| Guelph | 36 |
| Hamilton | 27 |
| Hawkesbury | 1 |
| Kingston | 7 |
| Kitchener-Waterloo | 61 |
| Lindsay | 2 |
| London | 46 |
| Mississauga | 137 |
| Napanee | 1 |
| North Bay | 2 |
| Orangeville | 17 |
| Oshawa | 26 |
| Ottawa | 12 |
| Owen Sound | 4 |
| Perth | 4 |
| Peterborough | 12 |
| Port Hope | 1 |
| Renfrew | 1 |
| Sarnia | 7 |
| Sault Ste. Marie | 8 |
| Simcoe | 2 |
| St. Catharines | 45 |
| St. Thomas | 20 |
| Stratford | 22 |
| Sudbury | 4 |
| Toronto | 169 |
| Windsor | 107 |
| Woodstock | 35 |
| Made only in Ontario | Company | Car Brand |
|---|---|
| CAMI | Chevrolet Equinox, Pontiac Torrent, Suzuki XL7, 2008 Equinox Sport, 2008 Pontiac Torrent GXP |
| Chrysler | Chrysler 300*, Dodge Charger, 2008 Dodge Challenger |
| Ford | Ford Crown Victoria/Mercury Grand Marquis, Ford Edge, 2009 Ford Flex, Lincoln MKX, Lincoln Town Car |
| GM | Buick Allure/LaCrosse, Chevrolet Camaro and Camaro Convertible, Chevrolet Impala, Chevrolet Silverado hybrid, GMC Sierra hybrid |
| Honda | Acura CSX, Acura MDX, Civic Coupe, Ridgeline SUT |
| Toyota | Lexus RX350*, Matrix, 2008 RAV4* |
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 $10 billion in the last three years alone.
New manufacturers from Asia, Europe and the U.S. are locating here all the time
Wealth of resources fuels our success
Our industry is concentrated along a 260-mile corridor that stretches from Windsor to Oshawa. It's home to 14 assembly plants operated by six of the world's top auto makers, more than 450 innovative parts manufacturers and 125,000 highly skilled and productive workers.
It draws on 44 respected universities and colleges and more than 24 public research centres focused on commercializing next-generation automotive innovations.
There's also plenty of available serviced land, an efficient transportation system that's constantly being upgraded and an excellent public health system. Our auto corridor also offers access to the more than $15 trillion North American market.
It's this concentration of resources, together with a dynamic business climate that helps companies get up and running fast, that sets Ontario apart from other jurisdictions - and has made it North America's automotive powerhouse.
supportive policies and programs
Helping to ensure we maintain our leadership position is the Canadian Automotive Partnership Council, a unique advisory group of industry, labour, government and academia that's developed a blueprint for future growth.
We also have a $500 million Advanced Manufacturing Investment Strategy that provides interest free loans for up to five years to help manufacturers develop leading-edge technologies and innovations. And there's a new Next Generation Jobs Fund, which is making $1.15 billion available to Ontario-based companies looking to invest in the development of cleaner technologies and products.
We're ready when you are
When auto companies come to Ontario, they know everything they need to succeed is in place. They plan for their expansion - and so do we.
If you're an assembler or parts manufacturer, there's no better place to be. Come and grow your business in Ontario.
Fact:
North American auto sales are forecast to rise by close to 10% between 2006 and 2011.
When Toyota was looking for a site for a new North American facility, it approached the province with a detailed list of requirements. These included available serviced land, proximity to the company's existing Cambridge plant, a good transportation infrastructure, fibre optic telecommunications - and a first-class workforce. Five sites were identified and Toyota chose Woodstock because it best met the company's needs. Also instrumental was the province's experienced economic development staff who worked hand in hand with Toyota from the earliest planning stages, facilitating every aspect of production. That has included working with other levels of government and service providers to ensure that millions of dollars of upgrades to local utilities, road infrastructure and hospital services were done to accommodate the project. Construction of the 1.8 million square foot plant began in October 2006 and was completed on schedule in September 2007. The first RAV4 is slated to roll off the assembly line in the fall of 2008.
Woodstock, Ontario will be the only North American production site for the RAV4.
The challenge for Honda's Alliston Plant 2 was how to add the compact Civic to the same assembly line that produces Honda's
two largest vehicles, the Ridgeline and the Acura MDX - and to do it quickly. Honda's Alliston associates rolled up their sleeves and went to work. They reprogrammed robots, added new ones, modified floor
conveyors and overhead carriers and made some assembly processes manual while automating others - and they did most of it during the week-long Christmas shutdown. Re-design to the start of production took a matter of months while regular production continued smoothly. Watching a Civic move down the assembly
line behind a Ridgeline is quite a sight, says Jim Miller, executive vice-president of Honda Canada, who points out that the plant is programmed for four models. Our plant is a model
of flexibility, and it's thanks to the talent and dedication of our associates. He adds, They're why we keep getting chosen for challenging projects.
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Ontario's assembly sector is on the move, fuelled by a well-earned reputation for consistently superior quality, productivity and innovation.
Home to the world's largest automakers
Chrysler, Ford, General Motors, Honda, Suzuki and Toyota all build vehicles in Ontario and we're one of very few jurisdictions that can make that claim. Last year our assemblers produced close to 2.5 million light vehicles - 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 manufacture vehicles - and to research, design and develop them as well.
Since October 2004, the big five have committed more than $7 billion in increased manufacturing and research and development capabilities. Honda is building a new $154 million engine plant near its successful Alliston facility. General Motors is spending $2.5 billion to improve its vehicle design and manufacturing capabilities at its plants in Oshawa, St. Catharines and Ingersoll.
Ford has invested $1 billion to turn its Oakville complex into a state-of-the-art flexible manufacturing site and Chrysler is spending $2 billion to redevelop its Ontario facilities. As for Toyota, it announced a $300 million expansion to its new $800 million Woodstock facility - before the cement had even been poured.
Capturing product lines
Ontario facilities are also winning new product lines. Fresh from getting the call to produce the 2007 Ford Edge and Lincoln MKX, Ford's Oakville facility was chosen to produce the 2009 Ford Flex crossover vehicle. CAMI, a joint venture between Suzuki and General Motors, was selected to build both the 2008 Equinox Sport and the Pontiac Torrent GXP in Ingersoll. General Motors Oshawa plant will be producing the Chevrolet Camaro, as well as the GMC Sierra and Chevrolet Silverado hybrids. And Toyota, which chose Ontario as the only site outside Japan to produce the luxury Lexus, is producing the 2008 RAV4 here as well.
| North America's Top Vehicle Manufacturing Jurisdictions | ||
|---|---|---|
| State/Province | 2006 Light Vehicle Production | |
| 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 |
Honda's award-winning Alliston plant is programmed to assemble up to four models.
Ford's Oakville, Ontario fuel cell R&D centre is humming along, hard at work on what will be the world's first large-scale application of the company's innovative fumes-to-fuel technology.
The researchers have come up with a novel way to capture volatile organic compounds (VOCs) and convert them into hydrogen-rich fuel using a large-scale stationary fuel cell, with the resulting energy being used to power parts of the plant.
It represents a huge leap forward from standard industry practice, which is to capture and incinerate solvent fumes, a process that consumes
millions of cubic feet of natural gas a year and results in combustion emissions. Ford, which will flip the switch on the technology at Oakville in late 2008, has high hopes of licensing it
to a wide range of advanced manufacturers. We have some of the world's brightest research minds here in Ontario, says Ford Canada CEO Bill Osborne. That, together with a skilled and productive workforce, is why Ford continues to invest heavily in the province.
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With vehicle manufacturers demanding ever lighter, safer and more environmentally friendly parts, the constant challenge for parts makers is to get innovative products to market faster.
Nobody does it better than Ontario's parts makers, which is why they've earned a global reputation for just-in-time delivery of innovative products that increasingly use new lightweight materials, including plastics and composites, magnesium and advanced high strength steel.
A hub for auto parts manufacturing
There are more than 450 dynamic 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, Toyota Boshoku, Aisin and HBPO.
Our parts makers are world leaders in:
- assembly and sub-assembly
- systems and component integration
- hydro-forming, stamping, injection and blow moulding
- ferrous and non-ferrous casting
- powder metal coating and fabrication
Like the vehicle assemblers, auto parts makers are making substantial investments in the province. Guelph-based Linamar Corp., which already has 22 facilities in Ontario, is pumping more than $1 billion into the province to establish a technology and training centre and up to six new manufacturing facilities. Nemak of Canada has invested $100 million at its Windsor facilities to launch an innovative engine block process. And Denso is spending close to $80 million to more than double its operations in Guelph.
Ford's Oakville plant initiates the world's first large-scale fumes-to-fuel technology.
Fact:
There are more than 50 Japanese auto parts companies already operating in Ontario's auto corridor.
Pushed to produce innovative top-quality parts ever faster, Tier 1 manufacturers are turning to technology suppliers like Systematix for help. Established in 1988, the Waterloo, Ontario-based company designs, manufactures and installs custom, turnkey factory automation machinery, including specialty robotic assembly and test systems for customers across North America and Europe. The secret to Systematix's success? Our solutions are simple, elegant and cost-competitive, says president Richard Neidert. And we back them up with training and product support. Located in the heart of Ontario's auto corridor with access to a number of top-notch universities and colleges, Systematix's highly skilled technical tradespeople and brilliant engineers have helped to build the company's reputation for practical innovation. Its location also gives Systematix access to hundreds of parts makers that as Neidert explains, creates an automotive ecosystem where the industry thrives.
Meridian Technologies started in 1981 with a clear mission: to be the leading full-service supplier of innovative magnesium die cast components and assemblies to the global automotive market. Today, the Strathroy, Ontario-based company is well on its way to achieving its goal. Meridian produces everything from huge front-of-dash to small steering column components, and thanks to the magnesium alloys used and the optimization of design, they provide the highest strength-to-weight ratio available of any metal. This allows for lower fuel consumption and reduced emissions. They're also 100% recyclable. Meridian's clients include OEMs like Ford, General Motors, Chrysler, Mercedes and BMW, as well as Tier 1 companies like Magna International, Intier and Johnson Controls. The key to our success has been our passionate, dedicated workforce, says chairman and CEO Joseph Gorman. Our workers are highly skilled and motivated. Their focus is on perfecting the technology to better serve our customers.
Meridian's uniquely designed, magnesium based products provide the highest strength-to-weight ratio of any metal component.
When it comes to deciding on where to invest, automakers look at two key annual studies: J.D. Power and Associates Initial Quality Study and the Harbour Report. It's always good news for Ontario, and 2007 was no exception. General Motors Oshawa No. 2 plant was ranked second in initial quality
in North America and four Ontario-built cars and trucks - the Lexus RX350, Honda Civic, Pontiac Grand Prix and Chevrolet Silverado - topped their respective segments. That news followed on the heels of the Harbour Report which ranked General Motors Oshawa assembly plants No. 1 and No. 2 the most productive in North America. In fact, four Ontario plants ranked among the top 10, several plants led their segments in efficiency and almost all Ontario facilities posted above-average performances when compared with other North American plants. "The widening of Ontario's productivity lead - and continued quality rankings -
reflects a record $10 billion in machinery and equipment investment over the past three years, says Carlos Gomes, senior economist and auto industry specialist at Scotiabank.
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Topping the list of reasons automotive manufacturers 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, from brilliant Ph.Ds in mechanical and materials engineering to efficient line assemblers to skilled tool and die makers.
Our autoworkers are the reason Ontario facilities are consistent winners of both the J.D. Power and Associates Initial Quality Study and the Harbour Report plant productivity survey.
Ontario's 125,000 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 close to nine years and that means reduced training costs for employers
- wage competitive -
| Average base wage for a tool & die marker | ||
|---|---|---|
| Province/State | $ amount | Index Percentage |
| Ontario | $45,693 | 100 |
| St. Louis, MO | $48,145 | 105 |
| Grand Rapids, MI | $48,674 | 106 |
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-operative programs give students critical, real-world experience.
| Building vehicles takes less time in Ontario | |
|---|---|
| North American assemply plant hours per vehicle | |
| Compact Cars | |
| Segment Average | 24.4 |
| Honda Alliston plant #1 | 18.5 |
| Compact CUV | |
| Segment Average | 21.7 |
| CAMI | 17.9 |
| Midsize Cars | |
| Segment Average | 20.1 |
| Oshawa Car Plants #2 | 15.7 |
Fact:
The Ontario government spends close to $90 million a year on apprenticeship programs to ensure there are 26,000 new registered apprentices yearly.
GM's Oshawa No. 2 plant ranked second in factory quality in North America in 2006.
When John Southwood learned about a new master's degree program in design and manufacturing he applied right away. An equipment engineer
in the paint department at Honda's Alliston Plant No. 1, Southwood was keen to enhance his skills while continuing to work. He was attracted to the Advanced Design and Manufacturing Institute (ADMI) because it's a virtual institute that draws on the formidable intellectual capital of Ontario's top five universities: Toronto, McMaster, Western Ontario, Waterloo and Queen's. Developed with industry input, the program,
which is aimed at working engineers, covers product design and development, engineering design, manufacturing processes and business. Each course is presented in two four-day modules, separated by four to six weeks, during which students work on an industry-related project. It's an invaluable program, says Southwood, who recently graduated. Because you have access to five universities, you can pick the 'best of the best' professors in your area of interest and take the skills you acquire back to your job. David Heaslip, ADMI's executive director, agrees. That's why we've had such great interest in the program.
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Research and testing are essential to the development of new materials, products and processes that help keep automotive companies competitive. Ontario has become an R&D location of choice for industry leaders like Toyota, General Motors, Chrysler, Magna, Linamar, Nemak and The Woodbridge Group.
Why? Because R&D talent is plentiful, costs are low 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 has made the commercialization of R&D a priority. And it shows with innovation after innovation coming onto the market.
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.
We're spending $1.7 billion over five years to support the commercialization of innovative projects at our research and teaching institutions.
We have thousands of researchers working on automotive-related projects at more than 24 renowned public research facilities like the Centre for Catalysis and Materials Research, the Centre for Advanced Materials and Manufacturing and the Waterloo Centre for Automotive Research.
Helping to commercialize research breakthroughs by connecting scientists with companies are Auto21 and the Centre of Excellence for Materials and Manufacturing.
Ontario's R&D expertise
- materials and manufacturing
- powertrain, fuels and emissions
- fuel cell technologies
- design processes
- intelligent systems and sensors
- photonics
- intelligent highway systems
| Country | Rating Canada's R&D Tax Treatment |
|---|---|
| Canada | 100 |
| Japan | 100.5 |
| France | 104.5 |
| U.K. | 108.5 |
| U.S. | 111.5 |
| Italy | 119.2 |
| Germany | 119.7 |
The Waterloo Centre for Automotive Research focuses on automation and electronics, ergonomics, forming, fuels and fuel cells, machining materials, welding and joining.
| Large Manufacturers 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 | ||||
| $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 (OBRITC).
3 Tax rates for manufacturers: Federal 22.12% plus Ontario 12.0% = Total 34.12%.
Fact:
Ontario companies don't have to take R&D deductions in the year they're incurred because R&D expenses can be carried forward indefinitely.
When General Motors announced it would be building the world's largest fuel cell vehicle fleet, it turned to its Canadian Engineering Centre to integrate the advanced fuel cell propulsion system into the Chevrolet Equinox. It was a challenging task for GM. Having lead-engineered and built the Equinox, we had the necessary in-depth knowledge of the vehicle, as well as the design experience in alternate fuels, says Greg Tyus, the centre's general director of engineering. GM started placing the 100 Chevrolet Equinox Fuel Cell vehicles, assembled at its Ingersoll, Ontario plant, with regular customers in fall 2007 for comprehensive market testing. What GM learns will influence future fuel cell vehicles. It speaks volumes about our capabilities that GM chose us for this project, says Tyus. With 450 multidisciplined engineers, the Canadian centre focuses on integrating unique technologies into vehicles - quickly. We have a very high level of talent here, says Tyus. And everyone brings the uniquely Canadian 'can-do' attitude to every challenge.
With 450 multidisciplined engineers, GM's Canadian Engineering Centre focuses on integrating unique technologies into vehicles.
In an industry that's increasingly global, Ontario has a new technological edge to enhance our competitiveness. It's called the Initiative for Automotive Manufacturing Innovation (IAMI) and it's a more than
$45 million program involving 30 top-notch researchers and a raft of partners that include auto manufacturers, parts makers, materials developers and equipment manufacturers. A joint project of McMaster University and the University of Waterloo, research is focused on advanced materials and coatings, advanced manufacturing processes and product performance. The climate is right for success, says
Dr. David Wilkinson, IAMI co-director and principal investigator. All the necessary components are in place, including some of the finest researchers anywhere, a collaborative research
environment, strong industry partnerships and a government committed to innovation.
And to ensure that the technological advances created by the research are commercialized and implemented quickly, there's an aggressive technology transfer program that taps into the expertise of McMaster's Xerox Centre for Entrepreneurship and Innovation and Waterloo's Centre of Business, Entrepreneurship and Technology.
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We've been building vehicles in Ontario for more than a century, so we know that when automotive manufacturers are looking for a place to invest, they need to be sure that everything they require is in place. That includes a first-class workforce, a sophisticated supply base, an advanced transportation infrastructure, available serviced land and experienced economic development personnel. We provide all that, as well as a unique health care advantage.
And we welcome foreign investment, as companies from all over Europe, the U.S. and Asia have discovered.
Ontario's cost advantage
When it comes to core operating costs, Ontario offers a clear advantage.
Part of it is due to 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%. And according to a recent study by the medical journal Open Medicine, our system provides health care that is as good as, or better than privately funded care.
And then there's Ontario's combined federal-provincial corporate income tax rate. For manufacturers it's more than three percentage points below the U.S. average - and by 2012 it will be almost ten percentage points lower.
One window service
We know that it's a major commitment of time and resources to set up business in a foreign jurisdiction. That's why we provide one window service.
When a company contacts the Ontario Investment and Trade Services, it's assigned an experienced business consultant to liaise with all levels of government and service providers to assist with the co-ordination of the necessary transportation infrastructure, power supply, telecommunications, and training programs.
Streamlined regulations
Our regulatory systems are streamlined. Business start-ups in Ontario require just two simple steps, compared to as many 20 in other industrialized countries. International companies opening a new office or already doing business in Ontario can take advantage of Canada's intra-company transfer work permit, which allows them to send key staff to their Ontario branch.
IAMI provides a framework for a collaborative research environment, strong industry partnerships and a government committed to innovation.
We're very excited about our future here, announced Emmanuel Boudon, president of HBPO, at the June 15, 2007 opening of the company's new 60,000 square foot Windsor facility - and then he said HBPO was already considering future expansion. HBPO, a joint venture that combines the strengths of its German and French parent companies Hella, Behr and Plastic Omnium, is the world's only auto parts company to specialize exclusively in design, development, assembly and logistics of integrated front-end modules. The Windsor facility, which features a state-of-the-art assembly line and a robotized production cell, will build the modules within two hours of receiving an order, and work three shifts a day. HBPO also plans on conducting R&D in Windsor and exporting its machine, tool, mould and plastics expertise worldwide. Windsor is the right place to make our business grow and succeed, says Boudon. The quality of the workforce is excellent and the economic development people are extremely helpful.
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 and interest rates. We're also the only G7 country not running a deficit.
And with more than 12.5 million people Ontario is big enough to support a broad base of manufacturing, 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.
The choice of leisure pursuits is endless. Ontario has everything from sophisticated nightlife to relaxed cottage living
Fact:
It takes just three days to establish a business in Canada, compared to eight in France, 24 in Germany and 31 in Japan.
HBPO chose Windsor because it was the right place for the business to grow and succeed.
At Hino's Woodstock, Ontario facility it's all about kaizen: continuous improvement.
It's a mind-set that's helping the plant meet - and exceed - its parent
company's expectations. To start, the plant, which produces light trucks, was up and running in a record four and a half months. The quality of the product has surpassed predictions as well, thanks to the take-charge
attitude of the workers and innovations created at the facility. These include a control panel system to highlight four key indicators of progress which are reviewed daily by management in Woodstock, Mississauga and Japan. The control panel system has proved so successful at helping the plant reduce its defects per unit, it's being implemented at other Hino locations worldwide. So is the Woodstock operation's multi-tasking approach that sees workers rotate through assembly, quality and logistics, learning all the disciplines and often discovering
ways to improve procedures in the process. Our team members embrace challenge and
kaizen, says Joe Beamson, vice president of manufacturing. That's why we're the successful operation we are.
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With just-in-time delivery a fact of life, 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 too.
Connected to global markets
Our vehicle manufacturers and parts suppliers are located along our auto corridor in southwestern Ontario and are totally integrated with U.S. suppliers and customers. As part of NAFTA (the North American Free Trade Agreement) they have access to a more than $15 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 75 airlines provide same-plane service to 47 cities in the U.S. and 76 cities abroad.
Over the next five years, we'll spend $3.4 billion on upgrades to the transportation infrastructure in southern Ontario that's essential for our auto industry.
We have same-day business access within North America and to Europe and an evening overlap with Asia. Our cultural and business affinities with Europe and Asia smooth the way for international investment, trade and 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.
Fact:
Harmonized Canadian and U.S. programs like FAST and NEXUS have created one of the most efficient borders in the world and we're investing more than $800 million to increase capacity.
Hino Canada was up and running in a record four and a half months.
When Japan-based Musashi first opened in Arthur, a small town in Ontario's busy auto corridor, it was to supply Honda in Alliston with steering and suspension components. That was in 1998. Since then, Musashi Auto Parts Canada has expanded four times. Its two plants total more than 175,000 square feet and employ more than 400 workers who also produce parts for GM, Chrysler and Hyundai. More than 90% of its products are exported to the U.S. The Arthur facility is also the only Musashi facility outside Japan that has a development centre. Arthur has proved to be an ideal location for us, says Musashi director Peter Hoffman. In addition to providing a skilled and loyal workforce, it offers proximity to our customers and a good transportation infrastructure - all reasons why we're growing.
In summer 2008 the first all-new Dodge Challenger will roll off the assembly line at Chrysler's Brampton, Ontario plant. It will mark the completion of a $1.4 billion redevelopment that has turned Brampton into a showcase for flexible manufacturing. The plant will build three models - the Chrysler 300C, Dodge Charger and Dodge Challenger - on one line, giving the company the ability to react quickly to consumer demand. And that's a definite competitive advantage. So why was Brampton chosen to lead the way for Chrysler? It starts with a stellar workforce, says Reid Bigland, president and CEO of Chrysler Canada. Our workers are skilled, hard- working and productive. They're backed up by a sophisticated supply base. Finally, there's the Ontario government which has made the auto industry a priority sector, ensuring that everything that's necessary for success is in place.
Chrysler's redeveloped $1.4 billion Brampton flexible manufacturing plant is capable of building four models on one line.
Halla Climate Control Canada on a roll
When Korea-based Halla decided the time had come to establish its first overseas facility, it headed to Belleville, Ontario. Belleville offered a springboard to the North American market, a labour pool with the right skill set, a good transportation system, an available facility - and room to grow. It proved to be the right choice. A world leader in its field, Halla Climate Control Canada has expanded twice since it was established in 1989. Today, the
company has three plants that employ 600 workers who produce components for OEMs like Ford, General Motors and Chrysler, as well as for Tier 2 companies like Denso, Visteon,
Air International and Cobasys. The Belleville facility also includes an engineering division that develops new products. "We've experienced spectacular growth," says commercial manager René Veillette who sees no end in sight. "Being located right in the heart of the North American auto industry gives us dozens of potential customers in our backyard."
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Ontario is uniquely equipped to meet the needs of the demanding automotive industry. We have the people. The technology. The market access. The connections.
All within our 260-mile auto corridor.
We can help
Looking for a place to locate or expand your automotive business?
We can help. We'll assign a seasoned business consultant to assist you with:
- the latest information on Ontario's economy and business climate
- site selection 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.
For more information about investing in Ontario, please visit our website:
There's no better place in the world to do business.
1-800-819-8701 (North America)
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