Canada’s entire auto industry could be a thing of the past in the not so distant future.
The Economist just predicted that the Canadian industry will be extinct by 2040.
And it could happen as early as 2030.
In the article, which was published late last week, influential Canadian analyst Dennis Desrosiers is quoted attributing the decline in its auto-manufacturing base to virtually nonexistent investment in new facilities.
He says we’re heading in the direction of Australia, as Canada’s last remaining auto manufacturers will shut down operations between 2016-2018.
Last week, the Conservative government chose to sell the remaining 73.4 million shares it holds in General Motors (part of its 2009 bail-out of GM and Chrysler) to Goldman Sachs.
Although the article calls the 2009 bailout a “success,” saving the jobs of 100,000 Canadians who worked in manufacturing plants, it alone was not ever going to be enough to save the industry from its impending decline.
The industry has been hit hard by the once soaring Canadian dollar, the weakening of the Canadian dollar, the revival of the US economy, a disappearance of free trade protections, and increased competition from countries like Mexico.
Last year, global automakers announced investments of $7-billion USD in Mexico, compared to just $750-million in Canada, according to the Centre for Automotive Research.
In Canada, the sales of auto parts continue to decline, and employment in auto manufacturing continues to decline.
Meanwhile, the global auto industry continues to thrive.
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