Canadian automotive producers are estimated to be heading for a combined loss of C$2.1 billion (US$1.8 bn) in 2009, according to figures out today.
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The Conference Board of Canada, which makes a twice-yearly outlook for the auto industry, added that it did not expect the Canadian manufacturers to turn a profit until 2011.
It forecast that the 21% fall in Canadian auto production seen in 2008, would be followed by a 36% drop this year.
In a statement the Baord’s economist, Sabrina Browarski said: “Automakers are bracing for more difficult months ahead and 2009 will be one of the most challenging years for the industry.
“After losing C$2.7 billion in 2008, the industry is expected to shed another C$2.1 billion this year, and it is forecast to remain in the red until at least 2011.”
The outlook assumes GM will survive and Chrysler will undergo a successful restructuring.
