Auto sector making long-term shifts away from U.S. market
The Canadian auto sector is shifting its reliance away from the US market due to trade war uncertainties. Companies are adjusting their supply chain strategies and exploring new markets, including domestic electric vehicle manufacturing and exports to other countries.
The Canadian auto sector is making long-term changes to reduce its reliance on the US market. A recent survey found 82% of manufacturers and suppliers are adjusting their supply chain strategies. ITD Industries, a manufacturer of automotive components, is relying more on government contracts and selling mobile command centers to provincial governments. The company is also exploring new products and markets, regardless of the outcome of the Canada-United States-Mexico Agreement renegotiations. Canada has 15 active free trade agreements, covering 51 countries, and is looking to collaborate with other countries on electric vehicle manufacturing projects. The federal government has signed agreements with South Korea and China to generate joint-venture investment in Canada's automotive sector. Canada is also investing in domestic electric vehicle manufacturing, with Volkswagen Group constructing a battery cell factory in Ontario.
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