Automotive Market – North America –December 9, 2016By: Paul Young, CPA, CGADate: December 9, 2016

Presenter / Paul Young, CPA, CGA

• 26 years in Corporate Finance• CPA/CGA since 1996• Educator for CGA/CPA• SME – Financial Planning and Analysis Solutions• SME – Risk Management Solutions• SME – Process Improvements

Agenda

This presentation will discuss Automotive Market for North America• Production and Trade Balance• Sales• Employment/Wages• Electrical Car• Trump/Automotive• Trudeau/Automotive• Mexico / Automotive

North American Production and Trade Balance

Canada / United States Trade Imbalance Transportation Equipment

United States Trade Imbalance Transportation Equipment (Express in millions $)

Source – Scotia Bank, Ward Automotive and BEA

Canada Automotive Sales Source – Desrosiers Automotive Consultants

North American Sales

Source – Scotia Bank, Ward Automotive and BEA

United States - Automotive Industry: Employment, Earnings, and Hours

Source - http://www.bls.gov/iag/tgs/iagauto.htm

United States - Automotive Industry: Employment, Earnings, and Hours

Source - http://www.bls.gov/iag/tgs/iagauto.htm

United States - Automotive Industry: Employment, Earnings, and Hours

Source - http://www.bls.gov/iag/tgs/iagauto.htm

Electrical Car

• US Electric Cars Sales Up 44% In November — 1.1% Of US Car Sales!Tesla Model S

Cost - $38,000Source - https://www.truecar.com/prices-new/chevrolet/volt-pricing/

Units/Sold – November 2016 – 3,000 Source

Source:https://cleantechnica.com/2016/12/03/uselectriccarssales44november11uscarsales/

Chevy Volt

Cost - $76,200 (USD) to $81,200 (USDSource - https://www.kbb.com/tesla/model-s/2016/

Units/Sold – November 2016 – 2,531

Plug-in StationsSource - https://www.plugshare.com/ More Plug-in stations are

required in both Canada and USA

Trump / Automotive

• “The changes under the Trump administration could include possible tariffs that will raise prices on imported vehicles and parts, fewer subsidies for electric cars and policies that discourage automakers from moving products from American factories to Mexico. ”Source - http://www.nytimes.com/2016/12/08/business/worried-auto-industry-braces-for-change-under-trump.html?_r=0

Canada / Automotive

• “ The federal and Ontario governments are actively discussing major investments in the big automakers that could total hundreds of millions of dollars. Following the recent conclusion of labour negotiations, the auto companies are now in talks with the governments about investing  in a sector critical to the Ontario and Canadian economies.

• “Trudeau government has a particular interest in investments within the more-technologically advanced and research-focused areas of the auto sector. Bains, whose department is overseeing the creation of an innovation agenda that it hopes will eventually boost the economy, said one of the key goals for the government is making sure Canada is on the "cutting edge of the car of the future.“ ”Source - http://thechronicleherald.ca/business/1421828-federal-ontario-governments-talking-investments-with-canadas-big-automakers – Notes: “Budget 2008 introduced the Automotive Innovation Fund (AIF), providing $250 million over

five years to support automotive firms' strategic, large-scale research and development (R&D) projects to build innovative, greener, more fuel-efficient vehicles. On January 4, 2013, the Prime Minister announced the renewal of the AIF, with an additional $250 million over the next five years. On February 11, 2014, the Government of Canada announced an additional $500 million over two years (2014–2016) to the Automotive Innovation Fund to support significant new strategic research and development projects and long-term investments in the Canadian automotive sector.” “”https://www.ic.gc.ca/eic/site/auto-auto.nsf/eng/am02257.html (Budget 2008 - Stephen Harper)

Mexico and Automotive

• “Mexican auto industry officials are lining up their arguments to defend the North American Free Trade Agreement against President-elect Donald Trump's campaign promise to renegotiate the pact or throw it out altogether. ”Source - http://www.autonews.com/article/20161204/GLOBAL/312059963/mexico-prepares-its-defense-of-nafta