Employment growth in Japanese-brand auto manufacturing stands in contrast to the rest of Canada’s automotive industry

TORONTO, Dec. 05, 2019 (GLOBE NEWSWIRE) — Japanese-brand auto manufacturers produced 47 per cent of light vehicles manufactured in Canada and employed nearly 40 per cent of Canada’s automotive industry workforce in 2018, according to a report released by the Japan Automobile Manufacturers Association of Canada (JAMA Canada).

The report, The Economic Contributions of the Japanese-Brand Automotive Industry in Canada, 2001-2018was prepared for JAMA Canada by Greig Mordue (McMaster University) and Brendan Sweeney (Trillium Centre for Advanced Manufacturing/APRC). It reveals the Japanese-brand automotive industry in Canada employed more than 94,000 people in 2018 – 14,560 in vehicle manufacturing, 17,776 in parts manufacturing, and 58,343 in Japanese-brand new vehicle dealerships.

The report also estimates the Japanese-brand auto industry in Canada supports more than 218,000 jobs across Canada through direct, intermediate and spin-off employment.

“This updated analysis demonstrates that despite substantial restructuring and change in Canada’s auto industry, the economic contributions of Japanese-brand automotive manufacturers, dealerships, automotive parts and tire manufacturers continue to be substantial,” said Dave Gardner, Chairman, JAMA Canada and President/CEO, Honda Canada. “JAMA Canada members are committed to continuing to deepen and grow their contributions through ongoing investment in vehicle and parts manufacturing, distribution, sales and service infrastructure, and employment growth.”

Japanese-brand automotive manufacturers produced 930,040 cars and light-duty trucks in Canada in 2018, with Toyota Motor Manufacturing Canada producing nearly 500,000 and Honda Canada more than 430,000. Toyota operates assembly plants in Cambridge and Woodstock, Ontario, and Honda of Canada operates assembly and engine manufacturing plants and a manufacturing and processing facility in Alliston, Ontario. This marks Honda’s highest-ever levels of Canadian production and follows significant investments at their assembly complex beginning in 2017. In 2018, Hino Motors Canada produced a record 2,873 medium-duty trucks at their plant in Woodstock, Ontario.

“These increases in vehicle production, employment, and earnings occurred during a period of industry restructuring and contraction, particularly in automotive manufacturing activities,” said David Worts, Executive Director, JAMA Canada.“ Japanese-brand automotive manufacturers have shown stability and growth during a period of restructuring, contraction and uncertainty across the entire industry.”

Since 1986, Japanese automakers have invested $13.9 billion, including $1.9 billion announced in 2017/2018, to create vehicle and engine manufacturing and assembly plants. In addition, there are over 60 Japanese auto parts plants now operating in Canada. Canada has been a net exporter of Japanese-brand vehicles since 1993, with over 5 million net vehicle exports. In 2018, Canada exported 3.7 times the number of Japanese-brand vehicles imported from Japan.

The Economic Contributions of the Japanese-Brand Automotive Industry in Canada, 2001-2018 Summary of findings:

  • Japanese-brand new vehicle dealerships employed 58,343 people, accounting for 37% of Canadian new vehicle dealership employment. In total, Japanese-brand automotive OEMs and new vehicle dealerships and Japanese-owned automotive parts and tire manufacturers directly employed 94,237 people.
  • They paid over $1 billion in personal income taxes, $192 million in employment insurance premiums (including employer contributions), and made $478 million in CPP/QPP contributions including employer contributions.
  • In addition to direct employment, Japanese-brand automotive OEMs and new vehicle dealerships support a substantial number of intermediate jobs in upstream and downstream supply chain activities, including automotive parts manufacturing, and in activities induced by expenditures and taxes.
  • In 2018, Japanese-brand OEM vehicle assembly plants directly and indirectly supported 97,200 jobs while Japanese-brand new vehicle dealerships directly and indirectly supported 121,061 jobs, a total of 218,261 jobs. This represents an increase of 95,199 jobs, or 77.4% compared to 2001.

About JAMA Canada

JAMA Canada is a non-profit trade association representing subsidiaries of Japanese automakers in Canada and was established in 1984 to promote greater understanding in trade and economic matters between Canada and Japan.

For more information, please visit: www.jama.ca