the ontario automotive communities alliance trade & investment advantage october 2011

The Ontario Automotive Communities Alliance trade & investment advantage

October 2011

North America’s number one location

• Ontario is North America’s number one location for producing vehicles and parts

• Ontario auto production forecast to grow 21% in Q3, 2011

• Ontario manufacturing costs are lower than in the U.S., UK, France, Italy, Germany, Netherlands and Japan

• Ontario has fast and easy access to the United States auto market

• Our job is to make your job easier

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Welcome to the Ontario Automotive Communities Alliance

Consider Ontario’s R&D advantages

• Lowest R&D costs in the G7, 12.9% lower than the U.S.

• 150 schools and labs working on auto research with 127,000 directly employed by the

Ontario auto industry

• In 2011 the University of Windsor opened the $112 million Centre for Engineering Innovation

• In 2011 the Oshawa Institute of Technology opened the $100 million Automotive Centre of

Excellence

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Welcome to the Ontario Automotive Communities Alliance

Two hours flying time to major U.S. cities

The Ontario Automotive Communities Alliance Cities

The Ontario AutomotiveCommunities Alliance cities

The Ontario Auto Communities Alliance includes 60 smaller cities, regions and communities within these major hubs.

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Welcome to the Ontario Automotive Communities Alliance

Ontario’s auto industry is on a roll

• The Conference Board of Canada says auto sector profits in 2011 should hit $1 billion – a 10-fold increase in one year

• The Ontario auto parts industry posted an 80% increase in profits in 2010

• Ontario increased its share of the total North American production to 17.3%, an all-time high

• Ontario continues to benefit from the trade agreements that allow 84% of all vehicles made in Canada to be exported to the giant U.S. market

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Welcome to the Ontario Automotive Communities Alliance

Solid Infrastructure for auto industryOEMs and parts companies

• Superior road, rail,

air services

• Top telecomm links

• Reliable hydro supply

Source: Statistics Canada

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Welcome to the Ontario Automotive Communities Alliance

Infrastructure support for business

Ontario is Canada’s largest provincial economy

• Canada’s exports and imports of merchandise total 58.9% of GDP – making it one of the world’s most open economies

• Canada has higher accumulated Foreign Direct Investment (FDI) than Brazil, Mexico, and Russia

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Welcome to the Ontario Automotive Communities Alliance

Canada’s stellar economicbase makes it a G7 leader

• World’s soundest banking system

• Ranked best place in the world to

create a new business

• Lowest payroll taxes in G7

• Lowest taxes on new business

investment in G7

Soundness of banks world rank

*Standing among 139 countries. Ranking based on the degree of soundness of financial institutions. Source: Global Competitiveness Report, 2010-11** Standing among 500 world banks based on total assets and long-term credit ratings. Source: Global Finance Magazine , September 2010

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Welcome to the Ontario Automotive Communities Alliance

Green and intelligent auto research for Ontario’s auto corridor

• R&D support for auto industry shift to “greener” cars

• New battery technologies

• Next generation of bio-fuels

• Renewable and recyclable plastic parts

• On-board computer systems

• Electrochemistry and nano-materials

• Voice recognition and location-based services

• Improved energy efficiencies with light-weight materials

Welcome to the Ontario Automotive Communities Alliance

Measures to help manufacturers

• Canadian tariffs on all manufacturing inputs and machines will be zero by 2015

• Auto manufacturing costs less in Ontario than U.S., UK, France, Italy, Germany, Netherlands and Japan

• Adds up to rapid profitability on new Canadian operations

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Welcome to the Ontario Automotive Communities Alliance

Ontario is Canada’s “business province” with a strong entrepreneurial culture

• It takes only one procedure and five days to register a company

• By 2012 the federal corporate income tax falls to 15% – half the U.S. tax rate.

• For a company earning $100 million in profit, total taxes in Canada will be over 30% less than the U.S.

Number of entrepreneurs as a percentage of the working population

Source: Statistics Netherlands 2008

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Welcome to the Ontario Automotive Communities Alliance

Ontario offers excellent location and attitude for doing global business

• Ontario Automotive Communities Alliance members are two hours or less by road from the U.S. border

• Recent multi-billion dollar investments in port, rail, road and air transportation

• One in five Canadians has a mother tongue other than English or French

• Asian and European languages spoken extensively

• Canadians have a global mind-set

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Welcome to the Ontario Automotive Communities Alliance

Ontario residents share in Canada’s excellent quality of life

• Highest quality of life among G7 countries

• Clean air, water and land

• Cultural diversity within a tolerant society

• Many recreation options

• Publicly-funded healthcare

• Commitment to rule of law and a strong justice system

Quality of life index

Source: IMD, * Rank among 58 economies considered in the World Competitiveness Yearbook 2010.

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Welcome to the Ontario Automotive Communities Alliance

Ontario’s auto industry attractsmany of the world’s best companies

• Big 3 – GM, Ford, Chrysler

• Honda, Toyota

• 50 Japanese parts firms

• Magna International, Linamar, The Woodbridge Group

• More than 400 companies

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Welcome to the Ontario Automotive Communities Alliance

Ready to join Ontario’s auto industry?

• Join the Ontario Automotive Communities Alliance!

• We’re North America’s largest automotive jurisdiction for many good reasons

• Learn more at www. www.ontarioautoalliance.com

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Welcome to the Ontario Automotive Communities Alliance

October 2011

The Ontario Automotive Communities Alliance trade & investment advantage