Published: July 25, 2018, 9:30 PM
Updated: November 21, 2021, 2:59 PM
We’ve been down the tariff road before
Where your car is made can engender national pride – and some anxiety, thanks to the steady drumbeat of tariff threats south of the border. We’ve been down this road before, so here are 18 examples of what has made Canadian auto-production great. (Credit: Wikimedia Commons/Phobofile)
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Canadian specific models produced locally
Prior to the signing of the 1965 Auto Pact by Canada and the US, stiff duties had forced American car companies to produce Canadian-specific models in branch plants located largely in Ontario. But with America exporting most of the required components, Canada racked up big trade deficits due to the value of parts crossing the border. (Credit: Wikimedia Commons/Dave_7)
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1961_Mercury_Monarch_Crwpitman
The Auto Pact abolished automobile-related tariffs between the two countries and, in exchange, the Big 3 automakers pledged that Canadian auto production would not fall below 1964 levels (560,000 vehicles). Canada would produce a smaller variety of vehicles, but in greater numbers – many of which were destined for America. In 1964, only 7.6% of Canadian-made vehicles were exported to the US, but by 1968 the figure was 60%. The net result was more efficient production and lower vehicle prices. (Credit: Wikimedia Commons/Crwpitman)
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Canadian incentives to promote production
The 1994 North American Free Trade Agreement (NAFTA) added Mexico to the mix, prompting automakers to open new plants in that low-cost jurisdiction. The Canadian and Ontario governments responded by incentivizing manufacturers to expand and retool their operations here. Canada’s five auto manufacturers built about 2.2 million units last year –10% more than were purchased by Canadians. But every assembly plant is foreign owned and subject to the vagaries of politics. Let’s take stock of our automobile plants and what they produce for Canadians and the rest of the world.
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Post-War boom brings production to Oakville
Volume vehicle production in Canada was pioneered by the Ford Motor Company of Canada, established in 1904 to assemble automobiles in a converted wagon works in Walkerville, now part of Windsor. The post-war boom prompted Ford to build a new plant and headquarters in Oakville, west of Toronto, in 1953, where it stands to this day.
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Flex manufacturing rolls with the changes
Oakville Assembly produced nearly all the models bound for Canadian Ford dealers until 1966, when the Auto Pact ushered in big changes. The site incorporates the former Truck Plant as well as the Oakville Assembly Plant, totaling 5.5 million square feet. It became the worldwide source of the Windstar minivan in 1995 after a big retooling (it had previously built the Tempo and Topaz front-drive compacts). Change came again in 2006 when the minivan was dropped in favour of the all-new Edge and related crossover SUVs, which necessitated $1 billion in new investment. Oakville Assembly currently builds the Edge and Flex, and Lincoln MKX and MKT. Further retooling this year will allow production of the Lincoln Nautilus to begin this fall, replacing the MKX.
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One of the world’s largest plants
The McLaughlin Carriage works in Oshawa, Ontario, began building automobiles in 1908 using powertrains sourced from Buick. The cars were branded McLaughlin until 1923, then McLaughlin-Buick until 1942. After a stock swap with General Motors Holding Company, founder Samuel McLaughlin began assembling Chevrolets in Oshawa alongside his own cars in 1915, eventually selling the McLaughlin company to General Motors. GM of Canada invested $8 billion to modernize its manufacturing capacity starting in 1986. Oshawa’s GM Autoplex grew to more than 10 million square feet, making it one of the world’s largest assembly plants, and earning it 19 J.D. Power awards for quality since 1999.
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Slowdown leads to upscale products
A slowdown in 2004 forced GM to shutter the aging Oshawa North plant and, five years later, close the truck plant due to the recession and GM’s looming bankruptcy. Today the Oshawa South plant builds the Chevrolet Impala and Cadillac XTS sedans, and the GMC Sierra and Chevrolet Silverado truck twins.
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Adopting the Japanese art of auto manufacturing
Canadian Automotive Manufacturing Inc. (CAMI) started out as a joint venture between General Motors and Suzuki in an attempt by GM to study the Japanese art of auto manufacturing management. At the same time, Japanese car sales were booming in the 1980s and Suzuki had been searching for a North American site to build its small cars and SUVs. Construction of the CAMI plant began in 1986 in Ingersoll, a short drive from London, Ontario. Production of the Suzuki Sidekick and Geo/GMC Tracker sport utes and Geo Metro hatchback commenced in 1989.
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An early adopter of crossover manufacturing
With tiny cars falling out of fashion, the last Metro subcompact rolled off the line in April 2001. That cleared the way for more sport utilities, and GM was keen to bring production of its all-new Chevrolet Equinox crossover to CAMI beginning in 2004, followed by the similar Pontiac Torrent a year later. Suzuki got in the act with its XL7 7-seater derivative in 2006, but it was a spectacularly poor seller and the Japanese automaker withdrew from CAMI in 2009, conceding full control of the plant to GM. In 2015, GM announced a $560 million upgrade to the plant to produce the next-generation Equinox, which continues to this day.
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Settling into Canada’s original Motor City
Located just across the river from Detroit, Chrysler’s Windsor Assembly Plant opened in 1928. The Ontario town was already well established as Canada’s original Motor City after Ford of Canada set down roots in 1904. Chrysler vehicles produced in Windsor included Plymouth sedans, Dodge hardtops, DeSoto convertibles, and Chrysler station wagons and coupes, as well as the groundbreaking “MagicWagon” minivans.
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Home of the MagicWagon
The plant made headlines as the source of Chrysler’s groundbreaking “MagicWagon” front-drive minivans in 1983. In addition to the 4th-generation Dodge Grand Caravan and Chrysler Town & Country, the Volkswagen Routan minivan commenced production there on the same platform in 2008, and right-hand-drive and diesel minivans for overseas markets began in August 2009. Production of the all-new Chrysler Pacifica minivan launched in February 2016. The plant currently builds the Chrysler Pacifica and the Dodge Grand Caravan.
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One of the jewels of auto manufacturing
Built by American Motors Corp. in 1986 with the financial assistance of the Canadian and Ontario governments, the high-tech plant just outside Toronto was one of the jewels Chrysler acquired when it purchased AMC in 1987. The facility began production of the poor-selling Eagle Premier then switched to making the Dodge Intrepid, Chrysler Concorde and Eagle Vision front-drive sedans in 1992. The plant was reconfigured for production of rear-wheel-drive vehicles in early 2004 with the launch of the Chrysler 300 sedan and Dodge Magnum wagon; the Dodge Charger was added soon after. The iconic Dodge Challenger began production in May 2008. All models are based on the rear-drive LX platform.
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World-class manufacturing
The plant got a thorough revamping in 2007 when Chrysler invested $1.2 billion to update the LX models. However, the site was temporarily shut down two years later as part of the automaker’s bankruptcy protection filing, which also affected the Windsor plant. Production restarted after Chrysler got an injection of cash from the U.S. and Canadian governments. Brampton Assembly was awarded bronze status for implementing World Class Manufacturing in 2015, which focuses on eliminating waste, increasing productivity, and improving production quality and safety. The plant continues to build the Chrysler 300, Dodge Challenger and Dodge Charger to this day.
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First Japanese company building in Canada
Honda came to Canada in 1969 to market its motorcycles, lawn mowers and snow blowers. Honda didn’t import any cars to Canada until the front-drive Civic hatchback was ready for prime time in 1973. The bigger Accord arrived for 1976. Honda of Canada Manufacturing was established in 1984 and commenced construction of an assembly plant in Alliston, north of Toronto. It opened in late 1986, making Honda the first Japanese auto manufacturer to start assembling in Canada. The first cars off the line were Accord sedans; Civic hatchbacks would soon follow, some of which were exported to faraway lands such as Brazil and China.
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Home to Canada’s best selling car
A second facility opened alongside the original Alliston plant in 1998, designed to produce the larger, second-generation Odyssey minivan, including right-hand-drive models bound for Japan. The Acura MDX sport-ute, built on the same platform, rolled out of the plant in 2000. The innovative Ridgeline pickup replaced Odyssey production starting in 2005. Assembly of the fourth-generation CR-V crossover started in 2011. The site became the global lead plant for the tenth-generation Civic in 2015. Alliston currently assembles Civic sedans and coupes (five-door hatches are built in the UK), as well as the popular CR-V sport-ute.
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First plant outside Japan to win top quality award
Toyota landed on our shores in 1965, but it would 1988 before Toyota Motor Manufacturing Canada began cranking out maple-syrup-infused Corolla sedans in Cambridge, Ontario. Cambridge now houses North and South plants, located in close proximity to parts producers, major transportation routes and an educated, skilled workforce. And it shows. TMMC has earned 14 J.D. Power plant quality awards, including the global Platinum Plant Quality Award in both 2011 and 2014, making Cambridge the first Toyota plant outside Japan to win the prestigious award.
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First plant outside Japan to build Lexus
Not coincidentally, Cambridge became the first site outside of Japan to build Lexus vehicles. Presently, Toyota makes the Lexus RX 350 and RX 450h hybrid SUVs and the Corolla. Corolla production will move to Mexico so that Canadian associates can concentrate on higher value products.
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Canada’s newest auto assembly plant
TMMC now operates three plants, adding Woodstock as Canada’s newest auto assembly plant dating back to 2008. Like the Cambridge plants, Woodstock is located in southwestern Ontario close to parts producers and major transportation corridors. The nearby city of London provides the plant with educated and skilled personnel.
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Only automaker to build hybrids and EVs
Toyota is the only vehicle manufacturer in Canada to assemble both gas-electric hybrid models and fully electric vehicles (the RAV4 EV). TMMC received federal and provincial investments in May 2018 which, along with Toyota’s own funds, will pay for upgrades to the plants for the 4th-generation RAV4 model change. The hot-selling RAV4 will be built on two lines in Ontario to keep up with market demand.
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