One of the drivers is the fact the country’s industry is constantly introducing new products, technologies and processes that require autoworkers to adopt new skills for future growth. The Canadian Government allocated C$130 million (US$101 million) to Ford’s plant in Windsor, Ontario, in March 2017, to allow it to focus on R&D in connected car and engine technology to improve and implement commercialization of new products. Ontario has produced 15% of cars and added 100,000 jobs in North America over the past five years.
Many renowned auto manufacturers, including GM, Ford, Chrysler, Toyota and Honda, have plants in Canada. So do parts suppliers, including Magna International (TSX: MG), Tesma (TSX: TMS.A), TRW Automotive (NYSE: TRW) and Ventra Group. Detroit’s Big Three — Ford, GM and Chrysler — operate plants but are adding capacity in countries such as China, Russia, Mexico and the US because of high Canadian wages and bigger incentives offered by their governments.