TORONTO: The world’s auto makers announced investments of $24.1-billion to increase production capacity last year and for the fourth year in the past five; none of the money has been earmarked for Canada.
The value of new-capacity investments announced by auto makers rose 37 per cent last year from 2013 levels, according to an annual study done by Office of Automotive & Vehicle Research at the University of Windsor’s Odette School of Business and the Automotive Parts Manufacturers Association of Canada.
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Canada has been earmarked for just $180-million of the investments auto makers have announced for new capacity since 2011, says the study, scheduled to be released Wednesday.
“The majority of new-vehicle assembly capacity in North America will be going to the southern U.S. and Mexico and will be added by the Japanese, South Korean and European assemblers,” a news release on the study said.
“Future assembly growth from the Detroit Three will be coming outside of North America.”
Ford Motor Co., General Motors Co. and Honda Motor Co. Ltd., have announced investments in Canada, but those are in existing assembly plants, not in new factories or increased production capacity. Money for new factories is flooding into such growth markets as China and Brazil, as well as Mexico and the United States.
China scooped up $12.7-billion or more than half of the investment auto makers announced last year. Investments in China have topped $48-billion during the past four years.
Investments announced in new US plants totalled $4.2-billion last year. Over a four-year period, the United States trails Mexico, which will be the recipient of $9.3-billion in new spending.
Mexico’s winning streak appears to have been halted at least temporarily this week with the announcement by Volvo Car Group that it will build a U.S. plant to supply North America, spending about $500-million.
