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Canada New Opportunities for U.S. Automotive Parts

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Linamar Corporation (Canada’s second-biggest auto parts manufacturer after Magna International) announced a partnership with the Ontario government on May 12th aimed at expanding the company’s manufacturing facilities. Under the
plan, Linamar will invest $1.1 billion over the next five years and is expected to create over 3,000 well-paying and highly skilled jobs during that time. The announcement is the latest from a series of auto manufacturers and parts suppliers that has seen over $6 billion invested in southern Ontario over the last two years.

 

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Canada Automotive Industry

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Ontario has won another automotive investment with interior parts giant Toyota Boshoku Corporation’s announcement on July 11, 2006 that it plans to build a plant in Woodstock, Ontario. The C$65-million plant will create an estimated 330 full-time jobs and will supply seats, door trim and carpets for Toyota Motor Manufacturing Canada Inc, which is in the midst of building a C$1.1 billion assembly plant in Woodstock. Both companies are part of parent company Toyota Motor Corp. based in Tokyo, Japan. Components made by Toyota Boshoku’s plant will go into the RAV4 Sport utility vehicle that Toyota Canada will assemble in its new plant starting in 2008. The new plant is set to produce 150,000 vehicle units annually.

 

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Canada Transportation Industry Sector

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The Canadian Transportation sector is one of the most modern and highly developed transportation infrastructures in the
world. It opens markets to natural resources, agricultural products, and manufactured goods. The transportation sector
consists of rail, truck, air, and marine. According to Transport Canada, the Commercial Transportation sector in 2004
accounted for US$34.7 billion (C$43.3 billion) or 4.1 percent of GDP and employs approximately 843,000 Canadians.
Trucking is the most important industry at US$11.5 billion (C$14.4 billion) of total output. The air and rail transportation
industries accounted for US$3.0 billion (C$3.8 billion) and US$4.4 billion (C$5.5 billion) respectively, while urban transit

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Canada Anti-Theft Systems

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Federal Transport Minister Jean-C. Lapierre announced on March 9, 2005, that anti-theft immobilizing systems will be mandatory in all new cars, vans and light trucks, including SUVs. The systems will assist in preventing the unauthorized use of vehicle by preventing its engine from starting. The amendments to the Motor Vehicle Safety Regulations will come into effect on September 1, 2007, and apply to vehicles built after that date.

 

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Canada Automotive Aftermarket Parts, Accessories, and Service Equipment

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The Automotive Aftermarket sector is the largest retail sector in Canada ahead of clothing, food, furniture, and pharmaceuticals. The automotive aftermarket encompasses production, re-manufacturing, distribution and retailing of replacement parts, tools, equipment, accessories, chemicals and services used to repair and replace automotive parts and components after their initial production. Using the NAICS codes, Statistics Canada estimates the retail value of the automotive aftermarket at C$23.1 billion (US$18.5 billion) in 2004. The Automotive Aftermarket market will experience an average annual real growth rate of 3-4 percent forecast for 2004 onward through 2007.

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