China eyes toehold in North America
SHANGHAI— The automotive sector presents Ontario’s greatest opportunity to break into the Chinese market in a big way, Premier Dalton McGuinty said yesterday. McGuinty and Economic Development Minister Joe Cordiano were told at a meeting with Chinese auto officials that it is China’s intention to manufacture cars in North American in the not too distant future.
“ Chinese are looking to gain a toehold in manufacturing offshore and we are saying, if you want access to the 435 million consumers found in the North American free trade zone, there is no better place to come to than Ontario,” McGuinty said in an interview.
“ I think we have a leg up on so many other jurisdictions when it comes to auto ( manufacturing), for a number of reasons,” McGuinty said, pointing to a highly skilled workforce as being first advantage. The premier, who is heading up a 125- person trade mission to China, said it was made clear in the meeting the Chinese are interested in making an investment in North America.
“ But they want to do it in a jurisdiction where they will be warmly received, and we’ve got the diversity that makes us receptive and we’ve got the expertise and foundation in the auto front,” he said.
Said Cordiano: “ I honestly believe it is one of our greatest strengths and can really bridge the two economies.” He said the Shanghai Automotive Industries Group made it clear it intends to become a global player, “ and they are going to be become big in a hurry.”
“ If they are going to be global companies, they are going to have to learn how to do that somewhere, and Ontario is the perfect place for them to locate because we already have three Japanese companies, ( as well as) Ford, General Motors and DaimlerChrysler, none of which are Canadian companies, so we are used to that,” the minister said.
Cordiano said a Chinese government objective in its fiveyear plan is to make the
auto sector a key economic driver.
“ I don’t think it is going to take them long to develop a brand here that they then produce for the Chinese market. Looking at their prospects for the North American market, they are going to want to expand their operation in some way, shape or form,” Cordiano said, adding that he guesses China will follow the pattern of the Japanese auto makers of introducing the brand first.
“ And after they build up to a certain sales volume, then they will look to build a facility where they can produce the cars there,” he said.