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The Ontario Automotive Communities Alliance trade & investment advantage
July 2011
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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
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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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Two hours flying time to major U.S. cities
The Ontario Automotive Communities Alliance Cities
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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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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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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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Infrastructure support for business
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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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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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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
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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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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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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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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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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
• Navistar
• More than 400 companies
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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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July 2011
The Ontario Automotive Communities Alliance trade & investment advantage