Ontario, Michigan aim to boost auto sector
Governments sign pact to work together to make region more competitive
Ontario and Michigan are teaming up in a bid to stem the flow of auto industry jobs to the southern United States and Mexico.
Premier Kathleen Wynne and Gov. Rick Snyder signed a memorandum of understanding Wednesday to find better ways to collaborate and make the Great Lakes region more competitive.
They will concentrate on new technologies such as self-driving cars, connected vehicles, lightweight materials and alternative fuels along with workforce skills development.
“We’re better off if we can share expertise and support each other,” Wynne told a news conference in Traverse City, Mich.
The popular Lake Michigan tourist spot hosted the annual Centre for Automotive Research conference this week.
“Of course we will compete with each other from time to time but, overall, we’re competing with jurisdictions to the south of us.”
Ontario and Michigan account for 26 per cent of vehicle production in North America.
The province’s share has shrunk in recent years despite a sharp decline in the value of the Canadian dollar, which has made production here relatively cheaper.
Snyder said his state and Ontario already work closely on environmental and other issues, so it only makes sense to pool resources — particularly with the planned Gordie Howe International Bridge improving the flow of shipments across the Detroit River.
“The auto industry is huge to both our jurisdictions,” said Snyder, a Republican who paid tribute to the Canadian government for spearheading the bridge effort.
There is no budget for the joint auto effort, but “there could be a lot of things” depending on the ideas generated, Snyder added.
“We’ve got a lot more work to do now that we’ve signed this.”
With about a dozen new auto or parts plants open or being built in Mexico, Wynne said Ontario and Michigan need to “find a niche” in terms of factors that will entice auto industry operations.
That may well be the highly educated workforce that prompted General Motors to announce it will hire 700 engineers and software developers to its research and development centre in Oshawa, the Liberal premier suggested.
“If that’s our advantage . . . we’d better make sure we build on that,” she added. “We’re not going to be Mexico” in a reference to lower labour and production costs there.
“You don’t hear about research and development in Mexico like you do in the Great Lakes,” added Snyder. “It’s trending our way . . . we need to reinforce our strengths.”