Canada-U.S. Trade Connection: The Automobile Industry
Overview: This inquiry lesson addresses the Canada-U.S. trade connection, the world’s largest
bilateral trade relationship. The example of the automobile industry will highlight the trade relationship
based on geographic factors including location, resources, and transportation networks. The further
inquiry question investigates whether a new bridge should be built to support the automobile industry
and the Canada-U.S. trade relationship.
Minnesota Social Studies Standard and Benchmark:
Standard 10. The meaning, use, distribution and importance of resources change over time.
8.3.3.10.1 Explain how the changing patterns of industrialization and trade between the
United States, and Canada or Mexico, have resulted in close connections between the
countries in terms of manufacturing, energy and finance.
Example: Trade patterns between Minnesota and Mexico, North American Free Trade Agreement,
trade patterns between Minnesota and Canada, the building of the Great Lakes Seaway, the
manufacturing of automobiles and other products in the Great Lakes Industrial Region, the
development of the Canadian oil and gas fields and the pipelines connecting them to markets in the
United States.
Standard 10. The meaning, use, distribution and importance of resources change over time.
8.3.3.10.2 Describe the impact of comparative advantage, the international division of labor,
and de-industrialization on manufacturing regions and commercial districts within urban areas
in the United States and Canada.
Example: Decline of the Midwest as an industrial region because of the outsourcing of manufacturing,
the rise of export focused garment manufacturing in China, Southeast Asia and elsewhere, the
development of call centers and computer technology support services in India.
Objectives/Learning Target: Students will be able to...
Explain how Canada’s geographic factors including location, resources and transportation networks are
important for Canada’s manufacturing and the production of automobiles
Provide reasons why Canada and the U.S. have a long-standing trade connection
Explain why the auto industry is a fully integrated continental industry
Provide reasons why Canada is building the Detroit Bridge
Time: 3-6 days depending on number of activities and extensions selected
Required Materials and resources:
Computer access with projector
Computer access for all students
Textbooks and atlases
Activity Materials: Scissors, Glue Sticks, Pencils, Paper, Stencils (see activity to create), construction
paper, paper bags
Power Point “Auto Overview: Where is Your Car Made? Where Should a New Bridge be Built?”
Handouts:
 “Resources for Why are Cars Made in Canada”
 “Why are Cars Made in Canada?” Chart and Key




“Building a Car Activity: Teacher Directions”
“Building a Car Activity”
“Vehicle Stencils”
“Canada’s Automobile Bailout” articles
Websites:
“Vehicles Made in Canada” at Government of Canada: Industry Canada
http://www.ic.gc.ca/eic/site/auto-auto.nsf/eng/am02365.html
Topographic Map at Atlas of Canada
http://atlas.nrcan.gc.ca/site/english/maps/topo/map
“State Trade Fact Sheet” for Michigan: Embassy of Canada in Washington
http://can-am.gc.ca/relations/commercial_relations_commerciales.aspx?lang=eng
“New Detroit-to-Canada Bridge to Be Unveiled”: New York Times, June 14, 2012
http://www.nytimes.com/2012/06/15/us/detroit-to-canada-bridge-to-be-unveiled.html
“Snyder, Canadian leader Harper to sign deal for new bridge over Detroit River on Friday”: Crain’s
Detroit Business, June 14, 2012
http://www.crainsdetroit.com/article/20120614/FREE/120619955/snyder-canadian-leader-harper-tosign-deal-for-new-bridge-over-detroit-river-on-Friday
Detroit Bridge Information
http://www.detroitbridgeinfo.com/
“PM Delivers Remarks in Windsor, Ontario”: Prime Minister’s Office, June 15, 2012 speech
http://www.pm.gc.ca/eng/media.asp?category=2&id=4866
“Michigan, Canada Strike $3.4 Billion Detroit Bridge Deal”: Bloomberg News, June 15, 2012
http://www.bloomberg.com/news/2012-06-15/michigan-has-detroit-bridge-deal-with-canada-snydersays.html
Resources list and Resources handout also list numerous websites for student investigation
Suggested Procedure:
Opening
Ask students if they will be earning their drivers’ license soon. What car would they like to drive? Begin
by showing pictures of cars that are made in Canada and asking where the cars are made using
“Vehicles Made in Canada” at Government of Canada: Industry Canada
http://www.ic.gc.ca/eic/site/auto-auto.nsf/eng/am02365.html. How expensive are the cars? Would the
cars be different or more expensive if they were made in Canada?
Day #1-2: Pose the question, “Why are cars made in Canada?” Divide students into groups to
investigate the reasons. Each group of 4 students receives a card with directions representing one of
the following: Physical Geographer, Human Geographer, Transportation Engineer, and Industrialist.
 Physical Geographer: physical landscape and resources
 Human Geographer: population characteristics including density and education
 Transportation Engineer: transportation networks including roads, ships, railroads
 Industrialist: skilled workers, access to resources, financial centers, location to market
Working in same role groups, students work collaboratively using the provided resources (including
their textbook and atlas) to answer the question, why are cars made in Canada, from their perspective.
Students complete the chart from their perspective with 4-5 facts before jigsaw the groups to share the
chart with at least one person from each role in the new groups.
Examine the Library of Congress Maps (listed under Resources) to understand why southern Ontario
became the location of the automobile industry. Add to the chart to complete it with more facts.
Using the Library of Congress Panoramic Maps Site, go to each panoramic map of four cities from the
1800s. Identify the characteristics that existed 100 years ago that might have helped the cities grow
and become centers of manufacturing. All four cities are located in southern Ontario. Looking at the
panoramic maps and the pattern of characteristics, what inferences can you make about the region?
Go to the Atlas of Canada, Natural Resources Canada section, for a topographic map at
http://atlas.nrcan.gc.ca/site/english/featureditems/census_2006 and then go to the Topographic Map
identified on the left sidebar. The direct link is http://atlas.nrcan.gc.ca/site/english/maps/topo/map
Zoom into the cities from Library of Congress historic and panoramic maps and compare the maps.
Go to Google Earth and locate the four cities. What changes have occurred in each city? (Consider
the interactive map http://www.centreforenergy.com/FactsStats/MapsCanada/CA-EnergyMap.asp from
the Center for Energy.) What inferences can be made about this region? Why is southern Ontario a
valuable manufacturing region?
Show the portion of the power point “Auto Overview: Where is Your Car Made? with red titles (slides 119) and discuss why southern Ontario is a major vehicle manufacturing center.
Students write a paragraph explaining why cars are made in southern Ontario, Canada as their exit
card.
Day #3:
Why might countries work together to make a product? Students remain in the original jigsaw groups
and receive directions for the Building a Car Activity in which students “construct” cars. Students will
understand that mass-producing an item (economy of scale) is a more efficient process than making a
single product one at a time. The idea of opportunity cost (or comparative advantage) will be clear as
students realize that they do not have all the resources needed in one location and trade is an
important characteristic of production. After completing the activity, discuss economy of scale and
opportunity cost in relation to the activity. Ask: Why might two countries work together to build a car?
Complete an Exit Card.
Day #4-6:
Using the automobile industry as the example, what are the current problems with Canada-United
States trade? Students might cite rising costs and wages, Detroit bankruptcy, alternative
transportation, foreign competition.
Show Power Point “Auto Overview: Where is Your Car Made? Where Should a New Bridge be Built?”
with blue titles to the “New International Bridge” slide (slides #20-31) and discuss whether a new bridge
is needed. Review the Michigan State Trade Fact Sheet to understand the cross-border trade.
Students investigate one of the questions using the three resources listed:
“New Detroit-to-Canada Bridge to Be Unveiled”; New York Times; June 14, 2012
http://www.nytimes.com/2012/06/15/us/detroit-to-canada-bridge-to-be-unveiled.html
“Snyder, Canadian leader Harper to sign deal for new bridge over Detroit River on Friday”; Crain’s
Detroit Business; June 14, 2012
http://www.crainsdetroit.com/article/20120614/FREE/120619955/snyder-canadian-leader-harper-tosign-deal-for-new-bridge-over-detroit-river-on-Friday
Detroit Bridge Information
http://www.detroitbridgeinfo.com/
Questions:
1. Should a new bridge be built?
2. Should an international bridge be owned and controlled by a private business or a government?
3. What rights & responsibilities do citizens have to make decisions about an international bridge?
Students work in groups to present both sides of the question using one of the following methods:
 Poster
 Multi-media
 Newscast/Interview Show
Students present their conclusions using the rubric as a guide. The class discusses groups’ results and
examines the current status of the bridge (power point slides #31-34).
Closing
Is the proposed new bridge appropriate and ethical? Read and discuss the documents on the
proposed new bridge to determine if the necessity of the bridge superseded legal and ethical concerns.
That is, was the democratic process of legislation overlooked for economic gain?
“PM Delivers Remarks in Windsor, Ontario” Speech on June 15, 2012; Prime Minister’s Office
http://www.pm.gc.ca/eng/media.asp?category=2&id=4866
“Michigan, Canada Strike $3.4 Billion Detroit Bridge Deal”; June 15, 2012; BLOOMBERG NEWS
http://www.bloomberg.com/news/2012-06-15/michigan-has-detroit-bridge-deal-with-canada-snydersays.html
Students write a paragraph: Using the auto industry as an example, explain the close connections
between Canada and the United States
Resources:
Library of Congress Historical Maps (4):
Partie occidentale de la Nouvelle France ou du Canada; 1755
http://hdl.loc.gov/loc.gmd/g3310.ar001900
Map of the United States in part and Canada, showing all the canals, railroads, navigable rivers; 1852
http://hdl.loc.gov/loc.gmd/g3711p.rr000190
Railroad map showing the lands of the Standard Coal and Iron Co. situated in the Hocking Valley, Ohio,
and their relation to the markets of the north and west; 1881
http://hdl.loc.gov/loc.gmd/g4071p.rr001330
Canadian Pacific Railway and connecting lines; 1912
http://hdl.loc.gov/loc.gmd/g3701p
Library of Congress Panoramic Maps (4):
Brantford; 1875; http://hdl.loc.gov/loc.gmd/g3464b.pm010690
Chatham; 1870; http://hdl.loc.gov/loc.gmd/g3464c.pm010700
St. Thomas; 1896; http://hdl.loc.gov/loc.gmd/g3464s.pm010740
Port Huron & Sarnia; 1867; http://hdl.loc.gov/loc.gmd/g4114p.pm003700
Interactive Historical Atlas
http://www.historicalatlas.ca/website/hacolp/national%5Fperspectives/population/UNIT%5F19/UNIT%5
F19%5FPopEcon%5F1800/UNIT_19_frame_PE00.htm
“A Unique and Vital Relationship”
http://www.canadainternational.gc.ca/can-am/offices-bureaux/welcomebienvenue.aspx?lang=eng&view=d
The Canadian Atlas
www.canadiangeographic.ca/atlas
“Michigan State Trade Fact Sheet” available at the Embassy of Canada website
http://www.canadainternational.gc.ca/can-am/commerce_can/2010/index.aspx?lang=eng&view=d
Additional Resources:
Additional Library of Congress Historic Maps:
Carte du Canada et des Etats-Unis de l'Amérique Septentrionale; 1778
http://hdl.loc.gov/loc.gmd/g3400.ar300000
Complete map of the railroads and watercourses in the United States & Canada; 1859
http://hdl.loc.gov/loc.gmd/g3701p.cw1022000
Tunis new colored rail road map of the United States & Canada; revised and corrected every month;
1859
http://hdl.loc.gov/loc.gmd/g3701p.rr000400
Watson's new rail-road and distance map of the United States and Canada, 1871; compiled from the
latest official sources; 1871
http://hdl.loc.gov/loc.gmd/g3701p.rr000520
Map showing the route of the Chicago and Canada Southern Railway and its connecting lines; 1872
http://hdl.loc.gov/loc.gmd/g3711p.rr003680
Rand McNally new official railroad map of the United States and southern Canada; 1920
http://hdl.loc.gov/loc.gmd/g3701p.ct001840
Extension: Investigate Minnesota’s economic relationship with Canada and determine what
Minnesota should do to enhance that relationship. Use the “Minnesota State Trade Fact Sheet”
available at the Embassy of Canada website.
http://www.canadainternational.gc.ca/can-am/commerce_can/2010/index.aspx?lang=eng&view=d
Extension: Why doesn’t Canada make its own cars?
Use the following resources to investigate Canada’s auto industry historically and the resources from
the lesson to determine why the country does not make cars today.
Why Canada does not produce its own cars:
CBC Digital Archives: “The Auto Pact: En Route to Free Trade” video
http://www.cbc.ca/archives/categories/economy-business/trade-agreements/the-auto-pact-en-route-tofree-trade/a-continental-auto-industry.html
CBC Digital Archives: “Before the Auto Pact” video
http://www.cbc.ca/archives/categories/economy-business/trade-agreements/the-auto-pact-en-route-tofree-trade/before-the-auto-pact.html
CBC Digital Archives: “Canada Fights for Auto Pact” video from 1980s regarding NAFTA
http://www.cbc.ca/archives/categories/economy-business/trade-agreements/the-auto-pact-en-route-tofree-trade/canada-fights-for-auto-pact.html
CBC Digital Archives: “Auto Pact: Bad Deal for Canada” recording
http://www.cbc.ca/archives/categories/economy-business/trade-agreements/the-auto-pact-en-route-tofree-trade/bad-deal-for-canada.html
Assessment:
Chart: “Why are Cars Made in Canada?”
Paragraph Exit Card: Explain why cars are made in southern Ontario, Canada
Student Responses
Exit Card
Group Presentation
Paragraph: Using the auto industry as an example, explain the close connections between Canada and
the United States
Rubric
Outstanding
Very Good
Good
Position
Supported by at least 3
Supported by 2 distinct
Supported by 2 sources
distinct sources
sources
Perspectives
Clearly presented a
Presented a balanced
Presented two
balanced perspective of
perspective of two
perspectives
at least two perspectives
perspectives
Facts & Opinions Clearly & effectively
Clearly presented &
Clearly presented facts
presented & distinguished distinguished facts &
& opinions
facts & opinions
opinions
Presentation
All participants actively
All participants involved in Participants involved in
involved in organized &
organized & prepared
organized presentation
prepared presentation
presentation
Credits: MAGE Middle School Task Force
Resources for “Why are Cars Made in Canada?”
Note: The Geographers & Transportation Network will be able to find information in their textbook,
atlas, and Library of Congress maps while the Industrialist will rely on the websites below.
Physical Geography:
St. Lawrence Seaway History
http://www.greatlakes-seaway.com/en/seaway/history/
CRS Earth Observation Catalogue, sponsored by Natural Resources Canada, for layered map of
Ontario
http://ceocat.ccrs.nrcan.gc.ca/wes/ClientDisplay/startEnglishClient.jsp?wes_portal_language_id
=en_US&showLogin=null&width=1024&height=768 or
http://ceocat.ccrs.nrcan.gc.ca/portal/index.html
Industrialist:
Handout “Canada’s Automobile Bailout”
Canada’s Automobile History
http://www.thecanadianencyclopedia.com/articles/automotive-industry
“Automotive”; Canadian Trade Commissioner Office
http://www.international.gc.ca/investors-investisseurs/sector-secteurs/automotiveautomobile.aspx?lang=eng
The Canadian Automotive Industry
HTTP://WWW.IC.GC.CA
Canadian Vehicle Manufacturers’ Association
http://www.cvma.ca/eng/industry/industry.asp
Ontario Automotive Communities Alliance
http://www.ontarioautoalliance.com/why-ontario/
“Where Our Cars are Manufactured”
http://blogs.cars.com/kickingtires/2012/04/where-our-cars-are-manufactured.html
Industry Canada “ARCHIVED—2006 Statistical Review of the Canadian Automotive Industry”
http://www.ic.gc.ca/eic/site/auto-auto.nsf/eng/h_am02103.html
Why are Cars Made in Canada?
Directions: From one of the perspectives below, investigate the reason why cars are made in Canada.
Begin by reading and recording 4-5 facts from your perspective in the box below. When you are done,
you will fill in boxes with facts from the other perspectives before completing the summary statements.




Physical Geographer: physical landscape and resources
Human Geographer: population characteristics including density and education
Transportation Engineer: transportation networks including roads, ships, railroads
Industrialist: skilled workers, access to resources, financial centers, location to market
Facts
Physical
Geographer
Human
Geographer
Transportation
Engineer
Industrialist
Why is southern Ontario a valuable manufacturing region?
Summary Statement
Key: Why are Cars Made in Canada?
Directions: From one of the perspectives below, investigate the reason why cars are made in Canada.
Begin by reading and recording 4-5 facts from your perspective in the box below. When you are done,
you will fill in boxes with facts from the other perspectives before completing the summary statements.




Physical Geographer: physical landscape and resources
Human Geographer: population characteristics including density and education
Transportation Engineer: transportation networks including roads, ships, railroads
Industrialist: skilled workers, access to resources, financial centers, location to market
Facts
Plains
Rich soil
Physical
Moderate climate
Geographer
Clean water
Hydroelectric, wind & nuclear power
Access to resources—minerals, water,
forests, land, population
Settled for 200 years
Farmers, merchants, skilled workers
Human
Cluster of integrated cities & Toronto nearby
Geographer
Common language—English
Influx of immigrants
Numerous skilled workers
Extensive waterways & canals
Ferries & steamboats
Transportation Railroads
Engineer
Bridges built across narrows
Ferries & steamboats
Vehicles, parts, supplies centrally located
Collaboration with 150 university, college &
research centers
Welcoming business atmosphere
Industrialist
Low labor & health costs
Low tax rates
Secure infrastructure
Skilled & educated workers—engineers
Access to resources
Financial center of Toronto
High standard of living
Summary Statement
St. Lawrence Lowlands—agriculture &
population center—with access to
resources & transportation
Skilled, cohesive workforce
Transportation linkages established for
over 100 years including water, rail, air,
highways
Very positive business atmosphere
with supportive government, skilled
workers, research support, access to
resources, transportation network,
proximity to markets
Why is southern Ontario a valuable manufacturing region?
Southern Ontario has the physical features, population characteristics, transportation network, and
business atmosphere to be a valuable manufacturing region. It is an established area within the central
manufacturing area of North America.
Building a Car Activity: Teacher Directions
Students will understand that mass-producing an item (economy of scale) is a more efficient process
than making a single product one at a time. In addition, the idea of opportunity cost (or comparative
advantage) will be clear. Students will realize that they do not have all the resources needed in one
location and they need to either focus on one product or trade to complete the product.
Students will be given bags with some materials to begin the task and $50 in “monopoly money”, but
they will need to purchase and trade for other materials. Students will be provided a direction sheet to
review the task and will have 10 minutes for the first round. Let students pause after the first round to
discuss their work, both within the group and the entire class. Students will continue for another 10
minutes in the second round, but the vendor should run out of materials. The teacher may be the
vendor or students may fulfill the task.
After the second round, use the discussion questions to review the task. Discuss the concept of
opportunity cost. Ask how this applies to the Canada-United States automobile manufacturing industry.
How might it apply to the trade of other goods?
Preparation:
 Print “Building a Car Activity” for students
 Make a poster of “Costs” for the vendor
 Copy “monopoly money” so each group has $50 in small bills & the vendor has $1000
 Fill a lunch bag for each student group with selected limited materials
 Make stencils of the standard car and the sports car
Teaching Steps:
1. Show a completed model of a standard car and a sports car.
2. Review the student directions.
3. Give each group a paper bag with various limited materials of white paper and colored paper
(except black, green, and red), scissors, glue stick, and pencil so every group will have to purchase
supplies to complete the standard car. Also, one group may have an additional pencil or glue stick or
colored paper. (White paper should not actually be used; no cars will be accepted that are white.)
4. In round #1, give students 10 minutes to complete the vehicles.
5. Discuss progress in groups and as a class.
6. In round #2, give students another 10 minutes, but the vendor will run out of supplies.
7. At the end of round #2, identify the number of cars produced and pay the groups. Each group will
pay you (the teacher as vendor) $100 to include $50 for resource costs and $50 for labor wages. The
remaining money is their profit.
8. Complete the discussion
Notes:
Each group begins with $50. They may earn:
 $50 for each certified standard car
 $60 for each certified green sports car
 $70 for each certified red sports car
Students will have white paper in their bag, but cannot make any white cars. (They can make
additional stencils if they realize that could be possible.) Making the sports car will be challenging
because they will need to make round tires and the stencil does not include the outline for the tires.
This will become a quality-control issue for some groups. The red paper is a scarce resource and it’s
more expensive.
A third round may be conducted if the class period is longer.
Costs:
 Standard Car Stencil $10
 Scissors $5
 Glue Stick $5
 Pencil $1
 Various Colored Paper $1
The following materials may only be purchased and will not be in the provided bag of resources:
 Sports Car Stencil $30
 Black Paper $5
 Green Paper $5
 Red Paper $10
Discussion Questions:
1. How many vehicles did you successfully complete?
2. How much money did you earn?
3. To complete the cars, did you each make an individual car or did you cooperate to make many
cars? Did it make a difference? Why?
4. Did anyone take a particular role to help the group with their task, such as manager, buyer, or
inspector of finished vehicles? Did it make a difference? Why?
5. What successes and frustrations did you have?
Follow-up Discussion Questions:
 How was the choice of auto production determined? Did the choice change in round #2? Why?
 Did the lack of resources from the vendor or trade with other groups limit or change your
production? How was this situation resolved?
 If the various groups were to coordinate the task, how would auto production change?
 Why might countries work together to produce a product?
 Why might Canada and the United States work together in the automobile industry? Would they
coordinate on other products? Why?
Building a Car Activity
The purpose of this task is to investigate the production of vehicles by constructing vehicles in small
groups. Your task is to produce as many high quality certified vehicles that are complete and accurate
as possible. Each vehicle must pass inspection before it will be certified and allowed onto the market.
You may choose to produce the standard car, the sports car, or both vehicles. You will have 10
minutes to produce your vehicles. Each finished vehicle will have black wheels. The car may not be
white because white-colored cars have saturated the market. Be sure to review the provided models
as needed.
You will begin with $50 and can earn $50 for each certified standard car. You may earn $60 for each
certified green sports car and $70 for each certified red sports car. At the end of production, you will
pay $50 in costs for the resources you received and you will pay $50 in wages for the workers. The
remaining money is your profit.
Earn $50 for each certified standard car
Earn $60 for each certified green sports car
Earn $70 for each certified red sports car
You will be given resources, but will be able to purchase additional raw materials (paper), machinery
(scissors, glue stick, pencil), and technology (sports car stencil) to make your vehicles from the vendor.
However, the vendor may not have enough materials due to production or transportation problems.
Costs:
 Standard Car Stencil $10
 Scissors $5
 Glue Stick $5
 Pencil $1
 Various Colored Paper $1
The following materials may only be purchased:
 Sports Car Stencil $30
 Black Paper $5
 Green Paper $5
 Red Paper $10
Complete the following chart:
Round
Money Available
#1
#2
Total Earnings
Standard Car Earnings
Sports Car Earnings
Total Earnings
Cost of Resources
- $50
Wages of Workers
- $50
Profit
VEHICLE STENCILS
Canada’s Automobile Bailout
The National Government of Canada and the Provincial Government of Ontario contributed $4 billion to
keep Chrysler Canada and General Motors Canada functioning. (Ford did not participate in the bailout.)
The bailout has been compared to the $12 billion the U.S. provided during the 2008 recession because
the 20% of bailout monies that Canada provided is equal to the 20% of auto production conducted in
Canada. The Canadian automotive industry campaigned to save Chrysler and the 9,400 autoworkers
with the threat that failure could lead to the collapse of Canada’s automobile manufacturing sector.
Since the Auto Pact of 1964 that coordinated the automobile industry between Canada and the United
States, the Canadian automobile industry has grown extensively. The Auto Pact was especially vital to
the auto industry in Ontario because of the province’s dependence on that industry. The Pact was
modified with the adoption of the North American Free trade Agreement (NAFTA), and ended with the
ruling of the World Trade Organization. However, the NAFTA regulations superseded the Auto Pact
and resulted in limited changes to the U.S.-Canada partnership in the automobile industry.
The automobile industry in Canada is the country’s largest manufacturing sector with 900,000 jobs tied
directly and indirectly to it. Thus, the collapse of the auto sector could potentially affect millions of
Canadians, but greatly affect the province of Ontario where 400,000 people work in the auto industry
and where all of Canada’s auto assembly plants are located.
Meanwhile, Chrysler and General Motors have been closing plants and laying off workers and sales of
automobiles have fallen by 15%, causing the loss of 15,000 auto-related jobs. Yet, non-U.S.
automobile manufacturers are having record sales in Canada and are half of all Canada auto sales.
Excerpted from the Following Resources:
“Whose Auto Bailout Is Most Expensive? Go Canada!”; Time World; May 6, 2009
“Canada Agrees to Its Own Auto Bailout”; New York Times; December 20, 2008
“Canada’s Auto Industry Imperiled”; The Washington Times; April 28, 2009
Canada’s Automobile Industry History
 Canada’s automobile manufacturing began in 1904 with a Henry Ford plant in Windsor, Ontario.
 U.S. branch plants were established in Canada, but most manufacturing still occurred in the
U.S. The manufacture of automobiles was fragmented and, with World War II, coordination was
necessary.
 The Auto Pact (Canada-United States Automotive Agreement) was signed in January 1945 for
broader free trade between the two countries—eliminate tariffs and regulations that limit or
prevent trade. The Pact created a single North American manufacturing sector and enabled
Canada to compete internationally.
 The European Union and Japan filed a complaint with the World Trade Organization (WTO) for
unfair business practices. The WTO agreed and in 2001 ruled that the Auto Pact broke global
trade rules.

In January 1994 the North American Free Trade Association (NAFTA) became effective linking
Canada, the U.S. and Mexico closely in trade, including the automobile manufacturing sector.
Thus, the ruling against the Auto Pact did not affect the Canada-U.S. automobile manufacturing.
PM announces signing of an agreement for the construction of the new Detroit River
International Crossing
15 June 2012
Windsor, Ontario
Prime Minister Stephen Harper today announced the conclusion of an agreement between Canada and
the State of Michigan toward building a new publicly owned bridge crossing between Windsor, Ontario,
and Detroit, Michigan. The agreement establishes the framework for each party's roles and
responsibilities for the construction, financing, operation and maintenance of the new international
crossing.
'Our Government is taking the measures necessary to facilitate trade and investment between Canada
and the United States in order to generate jobs, economic growth and long term prosperity,' said the
Prime Minister. 'This new bridge will reduce congestion at this critical Canada-U.S. border crossing,
support the creation of new export related jobs and investment opportunities along the Quebec City–
Windsor Corridor, increase the competitiveness of the North American manufacturing sector, and
provide thousands of construction jobs in Ontario and Michigan.'
The new Detroit River International Crossing will facilitate the movement of people and goods between
Canada and the U.S. by ensuring that there is sufficient border crossing capacity to handle projected
growth in cross border trade and traffic in the Windsor-Detroit trade corridor. It will also provide a muchneeded crossing alternative at the busiest Canada-U.S. commercial border crossing and create
thousands of jobs and opportunities on both sides of the border.
The project includes the bridge, Canadian and U.S. inspection plazas, and an interchange with
Interstate-75 with construction expected to take four to five years. The project will be funded by the
Government of Canada, with the U.S. plaza being the responsibility of the U.S. government. The
private sector is also expected to contribute to the project through a public-private partnership. Ontario
and Canada are jointly funding the Windsor Essex Parkway, which will connect Highway 401 to the new
bridge.
With the signing of the agreement, Canada and Michigan can now proceed with the next steps of the
project, which include further design work and property acquisition on the U.S. side before construction
can begin. Under the agreement, Canada will be responsible for constructing, financing and operating
the new crossing with likely private sector involvement.
Today's announcement demonstrates that the Government of Canada is working to advance the goals
of the Action Plan on Perimeter Security and Economic Competiveness announced by Prime Minister
Harper and President Obama in December 2011.
The new crossing is also a key component of the Continental Gateway and trade corridor.
News Release: http://pm.gc.ca/eng/media.asp?category=1&featureId=6&pageId=26&id=4864
PM delivers remarks in Windsor, Ontario
15 June 2012
Windsor, Ontario
Thank you very much everybody.
I also want to give a special thanks as well to the guy who kicked this off today, to our local Member of
Parliament Jeff Watson.
Jeff, as all of us were, was involved in some long parliamentary work the last couple of days and as
some of you know, it was particularly emotional for Jeff because he had some other engagements he
would have liked to have been doing including receiving his university degree from the University of
Windsor, so we just want to congratulate him on that tremendous milestone.
Greetings to Governor Snyder; to Secretary Lahood; to Ambassador Jacobson and Ambassador Doer;
to Premier McGuinty whose government also has an important role in this, delighted that you could be
here; Mayor Francis; as well to my other Caucus colleagues, to Minister John Baird and to Member of
Parliament Dave Van Kesteren who both joined us today and all distinguished guests.
Ladies and Gentlemen.
We have come here today with a very important announcement and a very important mission to
accomplish.
We shall launch a truly visionary project, one that will mean jobs and growth in both Canada and in the
United States.
Today, Governor Snyder and I are proud to announce that we have reached an agreement to build the
long awaited Detroit River International Crossing.
Thank you very much.
Thank you very much, ladies and gentlemen, I do have a lot of announcements, as you know, but this,
this is a really big one.
This is quite a large project, even for countries the size of the United States and Canada.
So, I want to tell you why we’re building such a project, why we’re building a new bridge, and of course
what the larger context is.
To put it in a nutshell, this new bridge, the second across the Detroit River, is an investment in the
future of the North American economy, of North American trade and of North American manufacturing.
It is a sign of our determination to move forward during a difficult time in the global economy.
And of course it is a celebration of the deep friendship that exists between Canada and the United
States.
Now ladies and gentlemen, some of you may know that last week I was in Europe.
I was there for the Queen’s Diamond Jubilee celebrations, but I also had the opportunity to discuss
developments with British Prime Minister Cameron and French President Hollande.
The risks to the global economy stemming from the Eurozone remain considerably elevated, with the
capacity to affect all of us.
They have also led, in some quarters, as you know, to a debate about the merits of fiscal discipline
versus growth.
Of course, in Canada, we have chosen both.
Under our Economic Action Plan, Canada has by far the lowest debt burden in the G-7, and we are well
on our way to balancing our budget by 2015.
But Economic Action Plan 2012 also tackles other obstacles to growth by changing immigration
processes, for example, making labour market reforms, regulatory reforms, technology reforms and
pursuing an ambitious trade agenda.
And it is trade, more specifically, increasing trade, that sets the context for what we’re doing here today
at our common border.
That’s why President Obama and I are working together on Joint Action Plans to boost security, trade
and travel at our border crossings.
And that’s why this new bridge is such an important investment.
America is Canada’s biggest customer, by far.
Canada is also America’s biggest market.
This is not going to change, not in my lifetime, probably not in my children’s.
And so much of that business is done right across this river, right here. The Governor basically
noted that almost one-third of the Canada-U.S economy, the continental economy, is constituted in
Ontario, Quebec and the eight Great Lakes states.
One third, ladies and gentlemen.
Once you hear that, it doesn’t seem quite so remarkable that business worth $120 billion dollars
crossed this river last year.
In fact, just upstream from where the Detroit River International Crossing is to be built, stands the
Ambassador Bridge completed in 1929.
The volume of trade over just that one bridge is greater than the trade between the United States and
Great Britain.
These are impressive numbers, very impressive numbers ladies and gentlemen.
Our mutual purpose then, is to build on that success, to cast our nets where the fish are so to speak.
Once this second bridge is completed, congestion will be reduced.
Trade will be accelerated in both directions.
This extra capacity, this faster border crossing into the American heartland, will encourage the kind of
investment that will create jobs in industries throughout the Windsor - Quebec City corridor – and in the
great state of Michigan as well, Governor.
When the train comes in, everybody rides.
So this is a great act of confidence in the future of the North American economy.
But one more thing.
This bridge will also be a very timely and fitting statement of the friendship between our two great
countries.
For it was 200 years ago this month that the War of 1812, the last armed conflict between our
countries, was declared.
Indeed, the first shots in that conflict were fired right here in the Detroit-Windsor region.
It took three years to bring peace back to the Detroit River and when it came, no one thought that it
would hold for very long.
But it endured.
And the longer it endured the more sense it seemed to make.
Hostility gradually subsided.
Differences were settled.
And our two great countries, Canada and the United States, became not just the best of friends, but
arguably the most intimate and successful international friendship in human history.
Governor Snyder, through your leadership in 2012 by bringing this initiative to the fore, you are adding
a great chapter in a 200-year-old tale of peace, partnership and prosperity.
And we are telling the world that whatever challenges and crises may exist elsewhere, Canadians and
Americans can still have big dreams and can still do big things. Thank you very much.
From: http://www.pm.gc.ca/eng/media.asp?category=2&id=4866
Snyder, Canadian leader Harper to sign deal for new bridge over Detroit River on Friday
CRAIN’S DETROIT BUSINESS
June 14, 2012 1:44 PM
By Bill Shea
Michigan Gov. Rick Snyder and Canadian Prime Minister Stephen Harper will announce in Detroit and
Windsor on Friday an agreement to build a new Detroit River bridge.
They will announce the deal at 12:45 p.m. at the Hilton Windsor Hotel, then at 3 p.m. at Cobo Center,
according to Harper’s schedule on his website, pm.gc.ca.
With them in Windsor will be Denis Lebel, Canada’s minister of transport; Jeff Watson, a member of
parliament for Essex; and U.S. Secretary of Transportation Ray LaHood.
Joining them at Cobo, where a signing ceremony will take place, will be Lebel; David Jacobson, U.S.
ambassador to Canada; John Baird, Canada’s minister of foreign affairs; Gary Doer, Canada’s
ambassador to the U.S.
Snyder has been in talks for some time with Canadian officials on how a deal could be crafted that
bypasses the Michigan Legislature, where enabling bills for the bridge project died last fall largely
because of Republican opposition.
It’s expected that Snyder will use the Michigan Strategic Fund as a conduit to build the span, rather
than go through the Legislature, sources familiar with the matter previously told Crain's.
Since enabling bills died in a state Senate committee last fall, Snyder has been seeking a way to
authorize Michigan’s participation in the $2.1 billion New International Trade Crossing project without
going through the Legislature — where his fellow Republicans have long opposed the span.
The governor's office repeatedly has declined to discuss specifics.
For the past several weeks, speculation has been that the Snyder administration would use what is
known as an interlocal agreement to get the joint Canadian-Michigan bridge project under way.
The Michigan Strategic Fund is an autonomous economic development board that has the statutory
ability to help finance a project such as the NITC bridge and has been a party to interlocal agreements.
Michigan's Urban Cooperation Act of 1967 allows two or more governmental units to enter together into
deals — interlocal agreements — for shared services, including transportation and infrastructure,
without having to seek legislative approval.
The law permits interlocal agreements with other states and Canada — deals that require approval
from the governor rather than the Legislature.
It's unclear which agencies would be signatories with the Strategic Fund in an interlocal agreement.
Likely candidates include any new agency created by the state to oversee the bridge, along with the
Michigan Department of Transportation or Transport Canada.
The Michigan Strategic Fund was created in 1984 to promote economic development. An interlocal
agreement between it and numerous other local government agencies established the quasi-public
Michigan Economic Development Corp. in 1999.
The state appropriations used to fund the MEDC go through the fund.
The NITC bridge would link I-75 and Ontario’s Highway 401 between Detroit’s industrial Delray
neighborhood and Windsor's Brighton Beach area.
The I-75 highway interchange is predicted to cost $385.9 million and the U.S. plaza $413.6 million. The
nearly $1 billion bridge itself would be financed by the concessionaire, and the remainder of the $2.1
billion price tag is the Canadian portion of the project.
Canada has offered to cover up to $550 million of Michigan's portion of the project and assume any
operational deficits. Toll revenue would cover the capital and operational costs, planners said, and
Canada would collect Michigan's toll share until the $550 million is paid off.
Michigan has spent nearly $40 million on Detroit River bridge costs since 2002, and construction is
expected to take 48 to 52 months.
From: http://www.crainsdetroit.com/article/20120614/FREE/120619955/snyder-canadian-leader-harperto-sign-deal-for-new-bridge-over-detroit-river-on-Friday
http://www.crainsdetroit.com/article/20120614/FREE/120619955
New Detroit-to-Canada Bridge to Be Unveiled
New York Times
June 14, 2012
By MONICA DAVEY and IAN AUSTEN
American and Canadian leaders are to unveil plans on Friday for a new bridge linking Detroit and
Windsor, Ontario, opening a new chapter in a long and contentious debate over the future of a region
that has become one of the nation’s busiest border crossings.
Formal announcements were planned in both countries about the bridge, which is expected to cost just
under $1 billion and be built through a public-private partnership. The entire project is likely to cost
several billion dollars beyond that, documents show, to create connections and modifications to nearby
roadways and customs plazas in both countries.
For now, Detroit is connected to Canada by a tunnel and the Ambassador Bridge, a privately owned
link that was built more than 80 years ago and carries millions of commercial and other vehicles
between the two countries each year. For years, some leaders in Michigan and in Canada have
pressed for another bridge — one that could, they argued, allow more traffic to make the journey more
efficiently and encourage more international trade for the auto industry and other businesses.
Many steps remain, and a precise timetable for a new bridge was uncertain. But by Thursday, the
Center for Automotive Research, a research group in Ann Arbor, was among those predicting a long list
of benefits a new bridge would draw, among them, 6,000 new jobs during the first two years of
construction and hundreds of additional jobs to operate the bridge.
Still, the proposal is certain to draw its share of critics, including the Detroit International Bridge
Company, which owns the Ambassador Bridge. The company has long opposed proposals for a
second, public bridge, and is leading a petition effort in Michigan to require a public vote on new
bridges and tunnels. The planned site of the new bridge is about two miles from the Ambassador
Bridge. Al Upchurch, a spokesman for the Detroit International Bridge Company, said Thursday that the
company would not comment on the any new proposal until its details were made public.
In Michigan, Gov. Rick Snyder has pushed for a new bridge, saying it would spur economic growth, but
state legislators in Lansing, many of whom are Mr. Snyder’s fellow Republicans, have cited concerns
about the costs. Last fall, a Senate committee failed to advance a bridge bill.
So Mr. Snyder, who insists that no Michigan funds will be needed to build the bridge, has proceeded
with plans without legislative backing, suggesting that he does not need it under the type of
arrangement he and Canadian authorities will describe on Friday.
Canadian officials have indicated they would pay as much as $550 million of Michigan’s share for
construction. Toll collections would ultimately pay for the bridge’s costs, officials said. On that side of
the border, officials said, congestion has particularly become a problem from the Ambassador Bridge,
which leads to a busy arterial road rather than a direct expressway.
The announcement comes at a challenging time for the auto industries in both countries. The industry
is one of the largest employers in Ontario, and most politicians are eager to remove border congestion
that could diminish Canada as an automobile manufacturing center. American automakers are also
eager to have easier access to a significant market for their cars and parts.
Because Canada’s auto plants stockpile fewer parts, they must be fed a steady stream of parts to keep
operating. Mark A. Nantais, the president of the Canadian Vehicle Manufacturers’ Association, said that
congestion at the crossing between Detroit and Windsor had sometimes caused temporary plant
shutdowns, which, he said, can cost manufacturers about $1.5 million an hour. Truckloads of autos and
auto parts account for a significant amount of the Ambassador Bridge’s traffic, he said.
From: http://www.nytimes.com/2012/06/15/us/detroit-to-canada-bridge-to-be-unveiled.html
Canadian Assembly Plants have a Global Reputation for Exceptional Quality
Invest in Canada website
Part of a fully integrated North American market with annual sales of US$260 billion in original
equipment parts— The automotive industry is Canada’s largest manufacturing sector. It accounts for
17 percent of North American vehicle production and has 2.5 million units of installed production
capacity. Because of its strategic position within the NAFTA region, Canada is among the world’s
largest exporters of automotive goods. In 2010, Canada’s auto sector had revenues totaling $68.5
billion and exports worth $51.5 billion.
Leading global automakers and original equipment manufacturers locate in Canada— Five of the
world’s largest automakers—Chrysler, Ford, General Motors, Honda and Toyota—along with leading
truck and bus manufacturers such as Hino, Motor Coach Industries, PACCAR and Volvo Bus, operate
production facilities in Canada. Many of the world’s largest original equipment suppliers also have
facilities in Canada including Denso, Continental, Aisin Seiki, Johnson Controls and TRW.
Support for innovation— The auto sector is supported by a strong R&D base both at the federal and
provincial levels. From 2000 to 2009, R&D spending in Canada’s auto industry has averaged $485
million per year. In addition to leveraging the Scientific Research & Experimental Development
(SR&ED) program, companies partner with universities, colleges and public research centres to
undertake joint research projects. Key organizations include the AUTO21 Network Centres of
Excellence, the National Research Council and the metals and materials laboratories of Natural
Resources Canada.
General Motors (GM) added two shifts at its assembly complex in Oshawa, Ontario, boosting
employment by 1,300 jobs. GM also invested $480 million in its St. Catharines powertrain plant to
produce a new engine and a new six-speed transmission, boosting employment by 800 jobs. Toyota
added a second shift at its assembly plant in Woodstock, Ontario, increasing employment by 800 jobs
and doubling capacity to 150,000 units annually. This concludes a $1.1 billion investment project to
construct Toyota’s third assembly plant in Canada. Ford completed a $590 million investment in
Windsor, Ontario to revamp its Essex Engine Plant and upgrade its advanced powertrain R&D centre.
Mexico’s Nemak invested $8 million in its Windsor Aluminum Plant to design and manufacture engine
blocks for GM in Canada, the U.S. and Australia. Germany’s Brose Automotive completed a $20
million expansion of its plant in London, Ontario. This expansion will enable the facility to supply
approximately 2.5 million car seat gearboxes to manufacturers across North America each year.
From: http://investincanada.gc.ca/eng/industry-sectors/automotive.aspx
The Canadian Automotive Industry
Industry Canada website
The Canadian automotive industry produces light duty vehicles — cars, vans, pickup trucks; heavy-duty
vehicles — trucks, transit buses, school buses, military vehicles; and a wide range of parts,
components, and systems used in vehicles of this nature. To complement its manufacturing activities,
the industry boasts a well-developed vehicle dealer network, plus an aftermarket organization, which
has grown into a world-class distribution system and service provider.
The Canadian automotive industry is:
•
•
•
•
Integrated into NAFTA (i.e. Canada, U.S., Mexico)
Globally competitive
The eighth largest in the world with positive trade balance
A major contributor to the Canadian economy, employing over half a million people
From: HTTP://WWW.IC.GC.CA
Michigan, Canada Strike $3.4 Billion Detroit Bridge Deal
BLOOMBERG NEWS
June 15, 2012
By Craig Trudell and Chris Christof
A second span connecting Detroit and Windsor would supplement the Ambassador Bridge about 2
miles north of the planned crossing. More than C$130 billion ($127 billion) in shipments and 8,000
trucks crossing the border at Detroit- Windsor each day, according to Canadian government data.
Manuel Moroun, the billionaire owner and operator of the existing bridge, has opposed a publicly
financed competitor.
Canada’s transport department forecasts that truck traffic will triple over the next 30 years. Canadian
officials and Snyder have been championing construction of a second bridge amid resistance from
some Michigan lawmakers and Moroun, 85, who wants to build his own adjoining six-lane span.
‘Economic Stimulus’
“The construction of the bridge itself will serve as an economic stimulus, providing jobs and state
revenues,” Kim Hill, the center’s director of sustainability and economic development, said yesterday in
an e-mailed statement.
“The region’s additional freight-shipping capability could attract private-sector investment, augmenting
the gross regional product and creating more employment opportunities,” Hill wrote.
The four-lane Ambassador was completed in 1929 by banker Joseph Bower. At 7,490 feet (2,283
meters), it was the world’s longest suspension bridge at the time, according to the bridge’s website. The
crossing carries one-quarter of the truck commerce between the U.S. and Canada and more than 7
million vehicles a year, according to the Public Border Operators Association.
From: http://www.bloomberg.com/news/2012-06-15/michigan-has-detroit-bridge-deal-with-canadasnyder-says.html
The Automotive Industry in Canada: Driving Our Economic Health and Prosperity
Canadian Vehicle Manufacturers’ Association
Canada is the ninth largest vehicle producer in the world. The auto sector is Canada's biggest contributor to
manufacturing Gross Domestic Product (GDP) and its largest manufacturing employer.
The industry directly supports over 550,000 jobs all across the country in 11 light duty and 3 heavy-duty
assembly plants, over 540 Original Equipment (OEM) parts manufacturers, 3949 dealerships and many
other directly related industries. It is estimated that the auto sector directly and indirectly employs one out of
every seven Canadians.
The Canadian vehicle assemblers are highly competitive, accounting for 3.7% of total world production of
68.6 million units and a global trade surplus in finished vehicles of more than $13.8 billion. This accounts for
31.4% of Canada’s 2007 global trade surplus of $43.9 billion.
The Canadian automotive industry is a leader in the development of a highly skilled workforce, action to
improve environmental quality and a major contributor to the health of Canada's economy.
From: http://www.cvma.ca/eng/industry/industry.asp
Ontario-Gateway to North America’s Innovation Economy
Ontario Automotive Communities Alliance
Ontario—gateway to North America’s innovation economy
Ontario’s auto sector directly employs 127,000 workers, with an annual payroll of $8 billion. Ten of the
world’s largest auto firms are in Ontario ranging from GM, Ford and Chrysler to Honda and Toyota plus
parts giants like Magna International and Linamar.
The Ontario auto sector works with more than 150 colleges, universities and private research centres
across the province to keep on top of the rapidly evolving technologies especially green technologies
such as renewable and recyclable bio-materials, the second generation of bio-fuels and better battery
technologies to support full electric powered vehicles.
According to figures from Auto 21, which supports nearly 200 researchers working on auto industry
projects, Ontario’s auto industry invests $500 million to $1 billion annually in research and
development.
Ontario is also leading Canada’s global success story. The Economist Intelligence Unit, one of the
global leaders in providing national and industrial analysis, rates Canada as the best G7 nation in which
to do business over the next several years. And Ontario drives more of the country’s business and
industrial than any other province in the country.
In July of 2011 Toyota committed to invest $545 million to upgrade two of its Ontario plants. Ontario’s
Minister of Economic Development stated at the time, “We’re very interested in keeping this sector very
healthy”.
Overall the Ontario Ministry of Economic Development and Innovation is investing close to $3 billion to
bolster the province’s world-class education system, its highly skilled workforce, creative environment,
and diverse culture.
The University of Waterloo Centre for Automotive Research (WatCAR) conducts advanced research to
enhance automotive innovation and competitiveness. More than 115 researchers conduct leading-edge
research across all of Waterloo’s six faculties including Engineering (Canada's largest Faculty of
Engineering) Mathematics (computer software), Science (electrochemistry and nano-materials),
Environment (knowledge integration), Applied Health Sciences (kinesiology), and Arts (voice
recognition).
In 2011 the University of Windsor is opening up the first phase of its $112 million dollar Centre for
Engineering Innovation, which will add to the significant research resources already accessed by the
Ontario Automotive Communities Alliance. Also in 2011, GM Canada opened the $100 million dollar
Automotive Centre of Excellence at the Oshawa Institute of Technology. The facility now offers the
world’s largest wind tunnel for automotive testing.
Support for the auto sector includes the benefits of the recent Canadian $6.2 billion dollar infrastructure
renewal program leading to improvements in roads, bridges and airports.
Top 10 reasons to invest in the Ontario Automotive Communities Alliance:
• Stable, highly talented, motivated workforce
• Access to the North American market (NAFTA)
• Openness to diversity and multiculturalism
• Economic engine of Canada
• World class research institutions
• Innovation leadership
• Low risk business environment
• Superior infrastructure
• Business incentives
• Quality of life
Ontario is also the largest province in Canada, and enjoys the nation's stellar economic fundamentals,
including:
▪ World’s soundest banking system (World Economic Forum)
▪ Fastest projected economic growth among the G7 for 2011 (International Monetary Fund)
▪ Highest proportion of post-secondary graduates in the OECD
▪ Lowest debt-to-GDP ratio in the G7
▪ Lowest new business investment taxes in the G7
▪ Lowest R&D costs in the G7, with a 12.9% advantage over the U.S.
High quality of life with public healthcare
From: http://www.ontarioautoalliance.com/why-ontario/