Desrosiers Automotive Consultants (DAC) announced on February 10 that Canadian light vehicle production dropped significantly in 2020. According to DAC, the overall production count of light vehicles was down to 1.4 million units, compared to nearly 2 million units in 2019. This is a reduction of over a quarter, and the industry has not seen levels this low since 1982.
DAC points out that COVID-19 issues alone are not the driving factor behind this dramatic decrease. Instead, the consultants attribute a shift in production to the United States and Mexico as a contributing factor.
“When Canadian production peaked in 1999, Canada’s share of North American production was over 17%,” said Andrew King, Managing Partner of DAC. “However, by 2020 Canada’s production share settled at approximately 11%, losing ground to Mexico and the U.S.”
DAC’s media release attributed the light vehicle production that remained in Canada in 2020 to Toyota (30%) and Honda (25%), noting that this is a “remarkable achievement by both companies given the automotive environment.”
Despite the poor showing last year, the firm predicts that change and momentum is on the horizon for the Canadian auto industry and its suppliers. General Motors will be reopening its Oshawa, Ont. plant, creating much needed jobs as Oshawa focuses on full-sized pickup assembly. Canadian zero emission vehicle (ZEV) production plans have also been announced by GM, Ford and Stellantis (formerly Fiat Chrysler Automobiles or FCA), which is welcome news for those within the Canadian auto sector.
