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Japan Automobile Manufacturers Association of Canada

POCKET REFERENCE

2016JAMA Canada

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made in Canada are Japanese brands?

Did you know that nearly

half the vehicles

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TABLE OF CONTENTS

Introduction 4

2015 Highlights 6

Japanese Automakers In Canada 8

Mind The Innovation Gap 13

Exports 14

Employment 17

Manufacturing Operations 18

Plant Map 22

Recent / New Developments 24 half the vehicles

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INTRODUCTION

It’s impossible to tell the story of Canada’s automobile industry over the past half century without mentioning the deep contributions of Japanese automakers.

Nearly half of all vehicles manufactured in Canada today carry a Japanese brand logo. All the way up and down the automotive supply chain, these vehicles represent not only a robust and growing export economy for Canada, or a strong domestic sales and distribution market, but more than 77,000 skilled jobs in communities stretching from coast to coast across Canada.

Canada’s automobile history is also the legacy of Japanese technologies Canadians now take for granted—lean-burn direct fuel injection, variable transmissions, turbo-chargers, gas electric and plug-in hybrids—which arrived on our shores thanks to the open flow of trade and ideas between our countries. Looking forward, next generation vehicles including zero emission (batteries and fuel cells), autonomous and connected vehicle technologies will mean safer and sustainable mobility for Canadians, as well as a strong and globally competitive auto industry in Canada.

As one member recently told me, “Japan and Canada aren’t afraid to invest in new technologies, and we’re not afraid to make decisions that deliver a longer-term payoff rather than immediate shareholder returns.” The Japanese-Canadian automobile partnership is one of many shared successes—but it’s also a partnership built on shared values.

It’s no wonder Japanese companies have accrued their investment here like nobody else. This year’s key performance data shows us what can happen if we continue to attract automotive investments and work together toward a mutually productive future.

Larry HutchinsonChairman, JAMA Canada

JAMA Canada was established as a non-profit trade association in 1984, and continues to promote greater understanding on economic and trade issues in the motor vehicle sector and to encourage closer cooperation between Canada and Japan.

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of Japanese brand vehicles sold in Canada were built in North America

In 2015,

78%

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2015 HIGHLIGHTS

Japanese auto brands in Canada achieved new record production, export and sales volumes for the second year in a row in 2015.

Light Vehicles

Medium Duty Trucks

Production975,705

Sales656,233

Production2,298

Sales2,234

1,000,000

950,000

900,000

850,000

800,000

750,000

700,000

650,000

600,000

550,000

500,000

450,000

2005 20152006 2007 2008 2009 2010 2011 2012 2013 2014

2,300

2,200

2,100

2,000

1,900

1,800

1,700

1,600

1,500

1,400

1,300

1,200

1,100

1,000

900

8002005 20152006 2007 2008 2009 2010 2011 2012 2013 2014

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Imports and Exports

Exports from Canada784,457

Canada exported 5.4 times as many new vehicles as were imported from Japan, the US, Mexico and other countries combined.

New Dealerships and Parts-Related Plants

More than 1,230new vehicle dealerships across Canada

More than 50Japanese auto parts plants operating in Canada

Imports fromJapan144,762

Thou

sand

s

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JAPANESE AUTOMAKERS IN CANADASince first coming to Canada in 1965, Japanese automakers have invested billions of dollars to create vehicle and parts manufacturing, distribution, sales and service infrastructure that is now critical to Canada’s economic success.

Canada depends on its partnership with Japanese car brands to support tens-of-thousands of skilled jobs, sustain healthy local economies and continue to compete as a vehicle exporter on a global scale.

Japanese Automakers in Canada (1965-2015)

Vehicle exportsVehicle productionHonda/Toyota (CAMI 89-08)

NAFTA-built auto sales

Japan-built vehicle sales

Total light vehicle market in Canada

Mill

ions

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Key Industry Metrics 2014 2015 % Change

Total Light Vehicle Sales 1,851,373 1,898,485 2.5%

Japanese Brands 625,559 656,233 4.9%

Share 33.8% 34.6%

Total Light Vehicle Production 2,382,218 2,268,996 -4.8%

Japanese Brands 972,418 975,705 0.3%

Share 40.8% 43.0%

Exports from Canadian Plants 766,073 784,457 2.4%

Imports from Japan 124,484 144,762 16.3%

Imports from NAFTA/others 265,930 316,681 19.1%

Total Employment 72,600 77,043 6.1%

Vehicle/Parts Plants 30,520 31,927 4.6%

Head/Regional Offices 2,080 2,116 1.7%

Dealerships in Canada 40,000 43,000 7.5%

Key Industry Metrics

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Light Vehicle Sales in Canada

Automakers 2014 2015 % Change Share

US (D3) 831,627 834,833 0.4% 44.0%

Japanese 625,559 656,233 4.9% 34.6%

Korean 208,111 203,526 -2.2% 10.7%

European 186,076 203,893 9.6% 10.7%

Total 1,851,373 1,898,485 2.5% 100.0%

Light Vehicle Production in Canada

Total 20152.27 million

5.6%Honda, Toyota and CAMI

0.8%Hyundai

0.4%Volvo

93.2%GM / Ford /

Chrysler

57%GM / Ford /

FCA

43%Honda and Toyota

Total 1989 1.94 million

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Japanese brand vehicles built in Canada since 1986

16.4 million

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direct and indirect jobs supported by Japanese car brands across Canada

77,000

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MIND THE INNOVATION GAP

• Lean-burn direct fuel injection

• Variable transmissions• Turbo-chargers• Gas electric and plug-in

hybrids

Canada’s trade relationship with Japan is an open door to innovation that will help drive Canada’s automobile economy into the future.

• Battery electric cars • Long range fuel cell vehicles • Hybrid diesel trucks • Autonomous vehicles

The free-flow of Japanese automotive technology into Canada will ensure families have the option to choose safe, reliable, energy-efficient vehicles at the leading edge of performance and affordability.

Technologies in the Rearview

Technologies on the Horizon

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EXPORTS

Canada’s economy benefits enormously from manufacturing and exporting Japanese cars. Since 1993, Canada has exported 4.8 million more Japanese brand vehicles than have been imported from Japan, the U.S. and other countries combined.

4.8 Million Net Vehicle Exports Between 1993 and 2015

Exports from CanadaImports from Japan, U.S. and Mexico

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

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skilled jobs at more than 60 manufacturing plants for both vehicles and parts related operations

31,000

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Japanese brand vehicles sold in Canada since 1965

15.1 million

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EMPLOYMENT

Between 2014-2015, total employment created by Japanese-brand automakers grew by 6.1 per cent, significantly outpacing the overall rate of Canadian job growth in the same period.

Direct and Indirect Employment in Canada

12,272Vehicle Manufacturing

19,655Parts, Materials, Machinery, Tool Die Mold, etc.

2,116Head & Regional Offices, etc.

43,000Dealerships (estimated)

77,043Employment in

Canada

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2015 MANUFACTURING OPERATIONS

Honda of Canada Mfg (HCM)

Location: Alliston, Ontario

Start-up: November 1986

Cumulative Investment: $3.9 billion

Vehicles Built: Plant 1: Civic Coupe/Sedan

Plant 2: CR-V

Engine Plant: 4 cylinder 2.0 litre i-VTEC

Employment: 4,200

Production: 384,982 - 2015

Export: 284,738 - 2015 (74.0%)

Annual Capacity: 400,000 vehicles & 243,000 engines (2 shifts)

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Toyota Motor Manufacturing Canada (TMMC)

Location: Cambridge, Ontario & Woodstock, Ontario

Start-up: November 1988 (Cambridge) & November 2008 (Woodstock)

Cumulative Investment: $7.2 billion

Vehicles Built: Cambridge North: Corolla

Cambridge South: Lexus RX 350, RX450h

Woodstock: Toyota RAV4

Employment: 8,000 +

Production: 590,723 - 2015

Export: 499,719 - 2015 (84.6%)

Annual Capacity: 500,000 units (2 shifts)

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Hino Motors Canada, Ltd.

Location: Woodstock, Ontario

Start-up: April 2006

Cumulative Investment: $3 million (equipment only)

Vehicles Built: Class 4-7 medium duty trucks

Class 4: 155

Class 5: 165, 195

Class 6: 258,268

Class 7: 338,358

Employment: 72

Production: 2,298 - 2015

Export: for Canada only

Annual Capacity: 2,000 units (1 shift)

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in Canadian automotive manufacturing and assembly plants invested by Japanese car brands since 1985

$11 billion

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PLANTS IN CANADA

1. Honda of Canada Manufacturing2. Toyota Motor Manufacturing Canada (Cambridge)

Vehicle Manufacturing Plants

5. Canadian Autoparts Toyota Inc. (CAPTIN)6. Waterville TG Coaticook7. Waterville TG Inc. (Waterville)8. Bridgestone Canada Inc. (Joliette)9. NTN Bearing Mfg. Canada10. F & P Inc.11. TRQSS, Inc.12. MSSC Canada13. TS Tech Canada Inc. (On Leslie St.)14. Vuteq Canada Inc.15. Bridgestone Canada Inc. (Woodstock)16. Freudenberg-NOK17. Tasus Canada Corporation18. INOAC Interior Systems LP 19. TS Tech Canada Inc. (On Harry Walker Pkwy North)20. Trimont Manufacturing Inc. (Scarborough)21. Listowel Technology Inc.22. ACG Automotive Canada Inc.23. Dyna-Mig, A Division of F & P Mfg., Inc. (Stratford)24. Sanoh Canada, Ltd.25. Jefferson Elora Corp. (JEC)

Auto Parts

3. Toyota Motor Manufacturing Canada (Woodstock)4. Hino Motors Canada, Ltd.

26. KTH Shelburne Mfg. Inc.27. Kumi Canada Corporation28. Musashi Auto Parts Canada Inc.29. Denso Manufacturing Canada, Inc. (DMCN)30. Showa Canada Inc.31. Waterville TG Ontario32. TG Minto Corporation33. FIO Automotive Canada Corp.34. Toyota Boshoku Canada Inc. (Elmira)35. Amino North America Corporation36. Toyotetsu Canada, Inc.37. Toyota Boshoku Canada Inc. (Woodstock)38. Aisin Canada Inc.39. Hayashi Canada Inc.40. Takumi Stamping Canada Inc.41. ABC INOAC Exterior Systems, Inc.42. Arvin Sango Canada Inc.43. TG Minto Corporation - Stratford Plant44. Howa Canada Manufacturing Inc.45. THK Rhythm Automotive Canada Ltd. (St. Catharines)46. THK Rhythm Automotive Canada Ltd. (Tillsonburg)

Materials, Machine Tools, Sub-Assembly & Services

47. Sanyo Canadian Machine Works Inc.48. Canada Mold Technology Inc.49. SMC Pneumatics (Canada) Ltd.50. DJ Galvanizing51. Coilplus Canada Inc.52. Durez Canada Company, Ltd.53. Maple Automotive Corp. (Cambridge)54. Kintetsu World Express (Canada) Inc.55. Horiba Automotive Test Systems Inc.56. Toyota Tsusho Canada, Inc. (Woodstock)

57. Tsubaki of Canada Ltd.58. NGF Canada Limited59. Green Metals Canada, Inc.60. Maple Automotive Corp. (Woodstock)61. Toyota Tsusho Canada, Inc. (Cambridge)62. Autrans Corporation Ingersoll Plant63. Jervis B. Webb Company of Canada, Ltd.64. KWE Guelph65. Omron Automotive Technologies66. Simcoe Parts Service Inc.

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Ontario

Toronto

London

Windsor

Woodstock

Stratford

St. Thomas

Cambridge

GuelphListowel

HamiltonFort Erie

Alliston

Newmarket

Orangeville

5 Delta

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7

6

Joliette

Waterville

Coaticook

British Columbia

Quebec

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Barrie

St. Mary’s

Petrolia

Chatham

Tillsonburg

Simcoe

Ingersoll

St. Catharines

Oakville

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• Honda Canada announced an $857 million investment in its three manufacturing plants in Alliston, Ontario. HCM is now the global lead plant for the current Honda Civic.

• Toyota will produce RAV4 vehicles in its Cambridge North Assembly plant starting in 2019, including a RAV4 Hybrid model. Toyota will also launch the next generation of Lexus RX 350 and 450h in Cambridge, Ontario with a $421 million investment.

• Hino Motors Canada will expand its operation in Woodstock (43,000 sq. ft.) to localize the cab trim line, which will increase local parts sourcing as well as employment in the plant.

Motor Vehicles

RECENT / NEW DEVELOPMENTS

Auto Parts

• Howa Canada Manufacturing opened a new plant in Alliston to provide interior roof liners for the Honda Civic and employed about 42 associates at start-up in late 2015.

• Toyota Boshoku Canada’s seat and door trim components plant in Elmira expanded in September 2015, adding more than 100 new team members to its operation.

• Mitsui High-tec, Inc. will establish its first Canadian plant in Brantford to develop precise motor core tooling for the automotive industry. Start-up is expected in early 2017 and will initially employ 48 high-skilled workers.