Canada’s Auto Parts Sector Losing Global Share Despite Rebound
(Money News)
Despite a recent rebound in the auto industry, Canada’s auto parts manufacturers have fallen from the ranks of global top 10 exporters because they failed to diversify their markets, an economist said on Wednesday.
Canada’s auto parts sector is losing global market share because it has not found a way to tap into the rapid growth in low-cost geographies, Scotiabank economist Carlos Gomes said in a report. “The inability to make inroads in the fast-growing markets of Asia and Latin America is undermining Canada’s position as a major auto parts producer,” Gomes said.
Until 2007, Canada was the world’s sixth-largest auto parts exporter, but was overtaken by Spain, Korea and China during the economic downturn, the report said. Last year, Canada lost its top 10 exporter spot to the Czech Republic. The United States takes 57% of all parts shipped from Canadian plants, but the U.S. share of global vehicle assemblies has slipped to 10% from about 25% in the mid-1990s, the report said. Read more here.
Date: April 27, 2012
