A CBC report quoting a local banking analyst says that the low Canadian dollar and cheaper labour costs are helping the Canadian auto sector outperform its American counterpart.
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Carlos Gomez, Scotiabank’s auto industry specialist, is quoted by CBC as saying that the ‘better performance by the Canadian auto industry reflects an ongoing cost advantage vis-a-vis the United States’.
He cites ‘a competitive currency and lower overall compensation costs than in the United States’, as significant factors in Canada’s favour.
The report adds that employment in the auto sector is holding up better in Canada than in the US, while parts shipments in Canada fell by only 5% last year, versus a double digit decline in the US.
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