Motor vehicle assembly shipments were down 28.2% in Canada in 2020, thanks to plant shutdowns, models disappearing, and production pauses amid the COVID-19 pandemic, according to DesRosiers Automotive Consultants (DAC).
They said the industry fell below $45 billion in shipments for the first time since 2010. Motor vehicle assembly was the hardest hit, followed by motor vehicle parts and accessories, motor vehicle body and trailer manufacturing, and metalworking machinery manufacturing.
The motor vehicle parts and accessories industry was down 18.5% in 2020, and fell below $30 billion in shipments for the first time since 2014. The motor vehicle body and trailer manufacturing industry experienced a decline in shipments of 13.5% during the same period, and although the final two months of 2020 did show increases of 12.0% and 12.6% — hinting at recovery. Shipments for the metalworking machinery manufacturing industry were down 11.3% for the same year.
“Despite the huge drops in shipments in 2020, the year was largely one of hope for the Canadian automotive manufacturing sector,” said Andrew King, Managing Partner at DAC. “New investments at a number of plants, the reopening of Oshawa, and the establishment of a footprint for EV manufacturing in Canada all brought optimism for the future.”
He said the changes will undoubtedly spill over into the parts industry in the coming years, “leading to significant upheaval, but also significant opportunities as new models are launched in Canadian plants.”
