TORONTO — A new report says there’s “no sustained indication” that Canada’s automotive manufacturing sector will return to pre-recession levels of capital investment.
DesRosiers Automotive Consultants says the country’s loss of investment to Mexico and the southern U.S. has already been well documented.
Its new report says that capital spending for Canada’s motor vehicle assembly industry has averaged just $1.2 billion a year since 2010.
That’s down from $2.3 billion annually on average from 2000 through 2009, a period that included a deep recession that hammered automakers.
DesRosiers says parts and accessories manufacturers have also dropped capital spending to $565.9 million from $887.7 million prior to the recession.
However, it says investments by truck body and trailer manufacturers have increased on average from $52.7 million for 2000 to 2009 to $82.7 million since 2010.
The Canadian Press