Auto in­dus­try in­vest­ing less: re­port

Lethbridge Herald - - BUSINESS - THE CANA­DIAN PRESS – TORONTO

Cap­i­tal in­vest­ment in the Cana­dian auto assem­bly sec­tor since the fi­nan­cial cri­sis has been nearly cut in half com­pared with the pe­riod be­fore the down­turn, a new re­port says.

DesRosiers Au­to­mo­tive Con­sul­tants said Wednesday that cap­i­tal spend­ing for Canada’s mo­tor ve­hi­cle assem­bly in­dus­try has av­er­aged $1.2 bil­lion a year for 2010-17. That’s down from $2.3 bil­lion an­nu­ally on av­er­age from 2000 through 2009.

Mean­while, the av­er­age new cap­i­tal ex­pen­di­tures for the parts and ac­ces­sories in­dus­try dropped to $565.9 mil­lion from $887.7 mil­lion for the same time pe­ri­ods.

“De­spite small oc­ca­sional in­creases in the pe­riod be­tween 2008 and 2017 there has been no sus­tained in­di­ca­tion of a re­turn to the heights recorded in the mid to late 90s and late 2000’s,” DesRosiers said. “Canada’s loss of in­vest­ment market share to Mex­ico and the south­ern U.S. over this pe­riod has been well doc­u­mented.”

How­ever, DesRosiers noted that in­vest­ments by truck body and trailer man­u­fac­tur­ers have in­creased on av­er­age from $52.7 mil­lion for 2000 to 2009 to $82.7 mil­lion since 2010.

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