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Automotive: No Longer on Auto-pilot
Late summer is the traditional time for changeovers in assembly plants, but the shift in production going on in North America has to do with a lot more than next year's model. The latest numbers, according to the Automotive News Data Center as of the end of July, showed that total year-to-date Canadian car and truck production had slowed from 1,758,461 vehicles as of July 29, 2000, to 1,504,877 this year. That's a drop-off of more than 14 percent. Parts makers like Visteon, which is closing its Markham facility and laying off around 1,200 workers, are paying the price.
Meanwhile, Mexican vehicle production has grown 8.8 percent, from 987,811 cars and trucks through July of last year to 1,074,534 through the end of July. Yet when a recent online poll by Canadian Machinery & Metalworking asked, "Will a free trade agreement between the Americas help or hurt your company?" 57 percent of respondents said "help" and 43 percent said "hurt." Perhaps one answer to this apperent contradiction is that the Americas are now a lot more than the U.S., and the auto business is a lot more than assembled cars and trucks. While Canada's Export Development Corp. recently forecast a two-year dip in auto exports, the export of machinery and equipment is rising in importance. Plenty of that machinery may be auto-related, and plenty may be headed south. The EDC calls for a 5 percent rise in overall exports to Mexico, and a 9 percent hike in exports to South America.
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