Canada wrong U.S. trade target: Stronach
MAGNA FOUNDER
TORONTO •FrankStronach, the founder and honorary chairman of auto parts giant Magna International Inc., says the United States may have been on the short end of some global trade deals, but that Canada is the wrong target for retaliatory trade policies.
“Canada and the United State are neighbours. We have the same language, the same customs. There shouldn’t be any problems between us,” Stronach told Financial Post in an interview last week.
“I think that there was a communication gap between Canada and the U.S... We will see if we’re able to correct that.”
Stronach’s comments come as NAFTA negotiations appear to have stalled and the U.S. administration pursues tariffs on imports of vehicles and auto parts that experts say could devastate the Canadian auto industry.
The Austrian-Canadian billionaire spoke to the Post a day after he was formally inducted into the Automotive Hall of Fame at a ceremony in Detroit on Thursday for transforming Magna from a small, one-man tool and die shop in Toronto into one of the world’s leading automotive parts suppliers.
“Mr. Stronach’s work ethic and vision ultimately generated Magna International, one of the largest automotive suppliers in the world,” reads a statement from the Hall of Fame. “His innovation in creating a unique corporate culture and compensation system, driving competition and excellence, has changed the global landscape of the automotive supply base.”
Stronach led the automotive parts company for more than five decades since first founding it in 1957. Under his leadership, the company’s operations expanded around the world and revenues soared, with total sales reaching $30.8 billion by the time he stepped down as chairman of company’s board in 2012.
Stronach, who said he has a personal relationship with U.S. President Donald Trump that dates back to before the U.S. election, added he understands Trump’s trade policies — but that Canada is not the right target in this instance.
“Basically what Trump is saying is that the days when you could close factories in America, move them to the Asia and ship to warehouses here are gone,” Stronach said.
“Trade agreements with other countries in the world were negative, one-sided and not good for America ... but things with our neighbours, that shouldn’t happen.”