The Ontario investment advantage 2015. North America’s number one location Ontario is North...

The Ontario investment advantage

2015

North America’s number one location

• Ontario is North America’s number one location for producing vehicles and parts

• Ontario is the only subnational jurisdiction in the world with 5 major auto assemblers, 700 suppliers and 500+ tool, die and mould makers

• Ontario produced 16% of all of North America’s light vehicle production over the past five years

• Manufacturing costs in Ontario are lower than in the U.S., UK, France, Italy, Germany, Netherlands and Japan

• Fast and easy access to the United States auto market through NAFTA

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www.ontarioautoalliance.com

Canadian Auto Stats

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Welcome to the Ontario Automotive Communities Alliance

OVERALL ECONOMIC IMPACTOverall (Including Parts & Assembly)

$119 Billion

Canadian Employment 100,000 (Direct) | 300,000 (Indirect)

Annual Canadian R&D Investment (Approx.) $500M - $1Billion

CONSIDERATIONSLight Vehicle Assembly Plants

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Heavy Vehicle (incl. cars, trucks, buses) >10 OEMS

Vehicles Per Year Output (Approx.) 1.5 to 2.8 Million

Two hours flying time to major U.S. cities

The Ontario Automotive Communities Alliance Cities

The Ontario AutomotiveCommunities Alliance cities

Our Alliance includes some of the largest automotive manufacturing locations in North America

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Great Lakes Production Cluster

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The most important region in North America. Over 8.1M vehicles produced annually and the hub of R&D, design and mission critical suppliers

Made in OACA

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OEM assembly plants Products manufactured in OACA region

General MotorsChevrolet Camaro & Equinox, Buick Regal, Cadillac XTS, GMC Terrain

ToyotaCorolla, Matrix, Rav4(including some fully electric models)

ChryslerDodge Grand Caravan, Chrysler Town & Country, Volkswagen Routan, Lancia Voyager

Lexus RX 350

Ford Engine assembly plants

General Dynamics Land Systems Light armoured vehicles for military use

Oshkosh Trucks Specialty construction trucks

Hino Trucks Light commercial trucks

Solid Infrastructure for auto industryOEMs and parts companies

• Superior road, rail,

air services

• Top telecomm links

• Reliable hydro supply

Source: Statistics Canada

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Infrastructure support for business

Ontario is Canada’s largest provincial economy

• Canada’s exports and imports of merchandise total 58.9% of GDP – making it one of the world’s most open economies

• Canada has higher accumulated Foreign Direct Investment (FDI) than Brazil, Mexico, and Russia

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Canada’s stellar economicbase makes it a G7 leader

• World’s soundest banking system

• Ranked best place in the world to

create a new business

• Lowest payroll taxes in G7

• Lowest taxes on new business

investment in G7

Soundness of banks world rank

*Standing among 139 countries. Ranking based on the degree of soundness of financial institutions. Source: Global Competitiveness Report, 2010-11** Standing among 500 world banks based on total assets and long-term credit ratings. Source: Global Finance Magazine , September 2010

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Green and intelligent auto research for Ontario’s auto corridor

• R&D support for auto industry shift to “greener” cars

• New battery technologies

• Next generation of bio-fuels

• Renewable and recyclable plastic parts

• On-board computer systems

• Electrochemistry and nano-materials

• Voice recognition and location-based services

• Improved energy efficiencies with light-weight materials


Consider Ontario’s R&D advantages

• Lowest R&D costs in the G7, 12.9% lower than the U.S.

• 150 schools and labs working on auto research with 127,000

directly employed by the Ontario auto industry

• Centre for Engineering Innovation – University of Windsor

• Auto Centre of Excellence – Oshawa Institute of Technology

• International Composites Research Center – Western

University in partnership with Fraunhofer Institute

• McMaster University Automotive Research Center (MARC)

- new $26 million facility to develop hybrid technologies

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Education in OACA

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Universities, Colleges and Research Institutes

University of Ontario Institute of Technology

Durham College

University of Waterloo (WatCAR)

Laurier University

Conestoga College

Western University (Fraunhofer Project Center for Composites Research)

Fanshawe College

McMaster University (McMaster Automotive Research Center)

University of Windsor (Centre for Engineering Innovation)

St. Clair College

National Research Council of Canada

Ontario’s Non-Union Environment and Worker Average Tenure Rates

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•Ontario Auto Parts Sector• 77% non-unionized

• Ontario Auto Assembly•58% non-unionized

2009 2011 2013

Canada (all manufacturing)

9.9 years 10.2 years 10.2 years

United States(all manufacturing)

5.9 years 6.1 years 6 years

Mexico (auto exporters)

2 years n/a n/a

The Canadian manufacturing workforce has an impressive average tenure, significantly longer than its NAFTA counterparts.

Measures to help manufacturers

• Canadian tariffs on all manufacturing inputs and machines will be zero by 2015

• Workforce training programs

• Competitive business costs

• Federal and Provincial incentive programs for auto manufacturing

• R&D tax incentives generate 40-60% savings

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Ontario is Canada’s “business province” with a strong entrepreneurial culture

• It takes only one procedure and five days to register a company

• In 2012, the federal corporate income tax was 15% – half the U.S. tax rate.

• For a company earning $100 million in profit, total taxes in Canada will be over 30% less than the U.S.

Number of entrepreneurs as a percentage of the working population

Source: Statistics Netherlands 2008

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Ontario offers excellent location and attitude for doing global business

• Ontario Automotive Communities Alliance members are two hours or less by road from the U.S. border

• Recent multi-billion dollar investments in port, rail, road and air transportation

• One in five Canadians has a mother tongue other than English or French

• Asian and European languages spoken extensively

• Canadians have a global mind-set

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Ontario residents share in Canada’s excellent quality of life

• Highest quality of life among G7 countries

• Clean air, water and land

• Cultural diversity within a tolerant society

• Many recreation options

• Publicly-funded healthcare

• Commitment to rule of law and a strong justice system

Quality of life index

Source: IMD, * Rank among 58 economies considered in the World Competitiveness Yearbook 2010.

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Ontario’s auto industry attractsmany of the world’s best companies

• Detroit 3 – GM, Ford, Chrysler assembly plants

• Honda, Toyota, Hino Truck Assembly operations

• International suppliers from Germany, Japan, Korea etc.

• Successful Canadian suppliers like Magna International, Linamar, Woodbridge Group

• More than 700 parts companies

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Recent Investments

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Jobs and Prosperity Fund: $2.7B over 10 years

Automotive Innovation Fund: $1B

Recent Commitments include:

Toyota July 2015 Next Gen Lexus $412 M

GM February 2015 Equinox $560 M

FCA January 2015 Minivan $2 B

Opportunity Next Exit: The Ontario Advantage

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Ready to join Ontario’s auto industry?

• We’re North America’s largest automotive jurisdiction for many good reasons

• Learn more at www.ontarioautoalliance.com

• Our job is to make your job easier!

– Site selection information and assistance

– Assistance with business start up in Ontario, Canada

– Applications for government incentive programs

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http://www.ontarioautoalliance.com/

2015

The Ontario investment advantage

Date post:	18-Jan-2016
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