Facts & Figures The Japanese Auto Industry in Canada 2011

Japan Automobile Manufacturers Association of Canada

www.jama.ca

British Columbia Hino 2 Honda 2,5 Mitsubishi 5 Nissan 2,5 Suzuki 5 Toyota 2,4,5 A

JAMA Canada Members Operations Type of operation: 1. Head Office 2. Regional Office / Sales & Service Reps / Parts Distribution Facility 3. Vehicle Manufacturing & Assembly Plant 4. Parts Manufacturing Plant

B Alberta Toyota 2 Nissan 2 Honda 2,5

5. Port / Transportation Facility 6. R&D

C Ontario Hino 1,2,3 Honda 1,2,3,4,5,6 Mitsubishi 1,2 Nissan 1,2 Subaru 1,2 Suzuki 1,2,5 Toyota 1,2,3,5,6

A

B D C

E

D Quebec Hino 2 Honda 2,5 Nissan 2 Subaru2 Suzuki 2 Toyota 2,5 E Nova Scotia Honda 2,5,6 Toyota 2

JAMA Canada was established as a non-profit trade association in 1984, and continues to promote greater understanding on economic and trade issues in the motor vehicle sector and to encourage closer cooperation between Canada and Japan.

Snapshot of the Japanese Automotive Industry in Canada Sales, production & exports 1965 - 2010

Production in Canada – 2010 The auto industry in North America began to recover from the global recession in 2010. Combined light vehicle output at Honda (HCM in Alliston, Ontario) and Toyota (TMMC in Cambridge and Woodstock, Ontario) totaled 737,321 units in 2010, an increase of 27.3% from 579,344 units in the previous year. Overall, Japanese automakers in Canada built almost 1.4 light duty vehicles in Canada for every one sold among all Japanese brands during 2010. In the medium duty truck segment, Hino Motors Canada started production of commercial trucks (Class 4 – 7 trucks) in Woodstock Ontario in April 2006. Output in 2010 totaled 1,085 units, up 10.8% from 979 units built in 2009. Currently, all Hino production was built for the Canadian market.

Vehicle Manufacturing Operations – 2010 HONDA of CANADA MFG (HCM) Location:

Alliston, Ontario

Start-up:

November 1986

Cumulative Investment: $2.6 billion

Civic Coupe

Acura MDX

Acura ZDX

Civic Sedan

Acura CSX

Vehicles Built:

Plant 1: Civic Coupe/Sedan, Acura CSX Plant 2: Acura MDX, Acura ZDX & Civic Sedan Engine Plant: 4 cylinder 1.8 litre i-VTEC

Employment:

4,200 (vehicle assembly & engine plant – with 2nd shift in Plant 2)

Production:

278,272 – 2010

Export:

218,620 – 2010 (78.6% export)

Annual Capacity:

390,000 (200,000 engines)

4-Cylinder i-VTEC

TOYOTA MOTOR MANUFACTURING CANADA (TMMC)

Corolla

RAV4

Matrix

Lexus RX 350

Location:

Cambridge, Ontario Woodstock, Ontario

Start-up:

November 1988 (Cambridge) November 2008 (Woodstock)

Cumulative Investment: $5.6 billion Vehicles Built:

Cambridge North: Corolla, Matrix Cambridge South: Lexus RX 350 Woodstock: Toyota RAV4

Employment:

6,500

Production:

459,049 – 2010

Export:

371,682 – 2010 (81.0% export)

Annual Capacity:

420,000 (2010) (Cambridge & Woodstock)

HINO MOTORS CANADA

COE Class 4 - 5 Trucks

MDT Class 6 - 7 Trucks

Location:

Woodstock, Ontario

Start-up:

April 2006

Investment:

$3.0 million

Vehicles Built:

Class 4 – 7 medium duty trucks

Employment

50 team members

Production:

1085 – 2010

Total capacity:

2,000 units

Light Vehicle Production in Canada

Exports & Imports – 2010 For Japanese affiliated plants (Honda and Toyota), Japanese brand exports in 2010 jumped 46.4% to 590,302 units from 403,217 units in 2009 – an 80.1% export to production ratio for 2010. Exports rose as a result of recovering demand in the US. While the vast majority of exported vehicles were shipped to the US, 28,400 units were sent to other international markets in 2010. Total Japanese-brand light vehicle imports from all countries into Canada rose 14.2% to 400,189 units in 2010. Shipments from Japan increased 11.3% to 196,279 units in 2010, while imports from NAFTA (Japanese plants in the US and Mexico) rose 17.1% to 203,910 units, surpassing the total unit volume from Japan, an indication of the continuing localization within North America. Every year since 1993, Canada has been a net exporter of Japanese brand vehicles. Over the past 17 years, about 2.5 million more vehicles have been exported from Canada than have been imported from Japan, the US and Mexico combined. Moreover, three times as many Japanese brand vehicles were exported from Canada in 2010 than were imported from Japan.

Exports > Imports

Exports (HCM, TMMC, CAMI 1999-2008) Imports from Japan, US, & Mexico

Sales – 2010 While light vehicle sales in Canada for the 2010 calendar year recovered modestly, up 6.6% to almost 1.56 million units, Japanese automakers lost unit sales and market share in 2010. Combined light vehicle sales slid 3.9% in 2010 to 531,154 units, down over 21,000 units compared to 2009. Passenger car sales for Japanese brands declined 11.8% in 2010 to 330,446 units, while sales of light trucks increased 12.6% to 200,708 units compared to the previous year. Moreover, sales of vehicles built in NA slipped 3.2% to 348,226 units, while sales of vehicles imported from Japan fell 5.4% to 182,928 units. As a result, in 2010 about 65.6% of all Japanese brand light vehicles sold in Canada were built in North America, while 34.4% were imported from Japan. Japanese light vehicle market share fell to 34.1% in 2010 from 37.9% in 2009.

Light Vehicle Sales 800000

Japan Built Sales

700000

NA Built Sales

600000

500000

400000

300000

200000

100000

0 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Sources of Sales in Canada - 2010

Employment The Japanese auto industry in Canada is multi-faceted and currently employs about 65,746 Canadians in manufacturing (vehicles, parts, tooling, machinery and materials), import, export, transportation, distribution, sales and service. In the manufacturing sector, three motor vehicle manufacturers (HCM, TMMC and Hino) employ about 10,750 associates and team members; and 13,986 jobs have been created in Canada at 58 parts, tool/die/mold, materials and other operations supplying the North American auto industry. In 2011, Honda opened a second shift at Plant 2, creating 400 new jobs in Alliston. There are more than 39,000 Canadians employed in over 1,190 dealerships across the nation. Finally, there are about 2,010 people employed in the regional and head offices of JAMA Canada members.

Direct & Indirect Employment in Canada

Vehicle Manufacturing 39,000

10,750

Parts/Materials/ Machinery/Tool Die Mold, etc. 13,986

2,010

Employment in Canada = 65,746

Head Offices Administration & Sales Dealerships

VEHICLE MANUFACTURING PLANTS 1. 2. 3. 4.

Honda of Canada Manufacturing Toyota Motor Manufacturing Canada (Cambridge) Toyota Motor Manufacturing Canada (Woodstock) Hino Motors Canada, Ltd.

AUTO PARTS 5. Canadian Autoparts Toyota Inc. (CAPTIN) 6. Waterville TG (Coaticook) 7. Waterville TG Inc. (Waterville) 8. Bridgestone/Firestone Canada Inc. (Joliette) 9. NTN Bearing Mfg. Canada 10. F & P Mfg. Inc. 11. Quality Safety Systems Co. (QSS) 12. MSSC Canada 13. TS Tech Canada Inc. 14. Vuteq Canada Inc. 15. Bridgestone/Firestone Canada Inc. (Woodstock) 16. Yachiyo of Ontario Mfg. Inc. 17. Freudenberg-NOK 18. Craft Originators Inc. 19. Intertec Systems 20. Trimont Manufacturing Inc. (Markham) 21. Trimont Manufacturing Inc. (Scarborough) 22. Listowel Technology Inc. 23. AGC Automotive Canada Inc. 24. Dyna-Mig Mfg. of Stratford Inc. 25. Sanoh Canada, Ltd. 26. Jefferson Elora Corp. (JEC) 27. KTH Shelburne Mfg. Inc. 28. Kumi Canada Corporation 29. Musashi Auto Parts Canada Inc. 30. Denso Manufacturing Canada, Inc. (DMCN) 31. Showa Canada Inc. 32. Waterville TG Ontario

33. TG Minto Corporation 34. FIO Automotive Canada Corp. 35. Toyota Boshoku Canada (Elmira) 36. Amino North America Corporation 37. Toyotetsu Canada Inc. 38. Toyota Boshoku 39. Aisin Canada Inc. (Stratford) 40. Hayashi Canada Inc. 41. Takumi Stamping Canada Inc.

MATERIALS, MACHINE TOOLS, SUB-ASSEMBLY & SERVICES 42. Sanyo Canadian Machine Works Inc. 43. Canada Mold Technology Inc. 44. SMC Pneumatics (Canada) Ltd. 45. DJ Galvanizing 46. Monzen Steel Inc. (c/o Metal One Canada Corp.) 47. Durez Canada 48. Maple Automotive Corp. 49. Kintetsu World Express (Canada) Inc. 50. Horiba Automotive Test Systems Inc. 51. Toyota Tsusho Canada, Inc. (Woodstock) 52. Tsubaki of Canada Ltd. 53. NGF Canada Ltd.

54. Green Metals Inc. 55. Maple Automotive Corp. (Woodstock) 56. Toyota Tsusho Canada, Inc. 57. Autrans Corporation – Ingersoll Plant 58. Jervis B. Webb Company of Canada 59. KWE Guelph 60. Nichirin Inc. 61. Omron Dualtec Automotive Electronics Inc. (Switch/ECU Div.) 62. Molten Aluminum Producer (MAPCan)

JAMA Canada Members

Hino Motors Canada, Ltd. 395 Ambassador Drive, Mississauga, Ontario L5T 2J3

Honda Canada Inc. 180 Honda Boulevard, Markham, Ontario L6C 0H9 (as of May 1, 2010) Honda of Canada Mfg. 4700 Tottenham Road, Box 5000, Alliston, Ontario L9R 1A2

Mitsubishi Motor Sales of Canada, Inc. 2090 Matheson Boulevard East, Mississauga, Ontario L4W 5P8

Nissan Canada Inc. 5290 Orbitor Drive, Mississauga, Ontario L4W 4Z5

Subaru Canada, Inc. 560 Suffolk Court, Mississauga, Ontario L5R 4J7

Suzuki Canada Inc. 100 East Beaver Creek Road, Richmond Hill, Ontario L4B 1J6

Toyota Canada Inc. One Toyota Place, Toronto, Ontario M1H 1H9

Toyota Motor Manufacturing Canada 1055 Fountain Street North, Cambridge, Ontario N3H 5K2

For further information, visit our website at

www.jama.ca