CAPC - News Release - December 18, 2002

CAPC on Road to Developing Automotive Strategy for Canada

TORONTO - - The Canadian Automotive Partnership Council (CAPC) met today to review a first set of proposals for measures to strengthen Canada's automotive industry. The Council is co-chaired by Michael Grimaldi, President of General Motors of Canada, and Don Walker, President of Intier Automotive.

Industry Minister Allan Rock and Ontario Enterprise, Opportunity and Innovation Minister, Jim Flaherty recognized the strategic importance and strong multiplier effect of the auto industry to Canada. The CAPC members are in the process of developing a long term strategic vision for the industry to ensure its growth and vitality.

CAPC confirmed that a Canadian Auto Strategy must address all five key dimensions identified by the work groups - human resources; innovation; trade infrastructure; fiscal and investment measures; and regulatory harmonization - in an integrated approach to ensuring a strong automotive industry and giving Canada a competitive advantage in earning automotive investments.

CAPC reviewed discussion drafts on these key elements, which were the collective effort of over 80 senior officials drawn from business, labour, academia and government. The Council is releasing summaries of these discussion drafts to enable interested Canadians to consider the full range of measures being advanced for consideration.

"We have a good foundation in Canada," said Mr. Grimaldi, "but in the highly competitive global automotive industry, we must proactively look at measures that will strengthen the industry and give Canada an edge for attracting future investment."

Mr. Walker said, "the discussions today highlight the complexity of the decision-making process for new investments in Canada." He added, "there is a strong willingness among the parties to work together to address the issues to keep and earn new investments for Canada and to ensure the health of our automotive industry."

The members of the Council also commended the valuable work to date, and the high-level engagement by the industry's most senior executives. Participants agreed to review the initial priorities, and to continue working through CAPC to examine additional initiatives on which industry, government, labour and academia can work together to encourage industry growth.

Industry Minister Allan Rock noted the importance of this new partnership to Canada's innovation and economic performance in the automotive sector. "The measures being advanced by the industry are integral to the development of the Government of Canada's national innovation and learning strategies. These measures are being made in collaboration with the provinces, for which automotive is a priority sector," he said. "I was particularly impressed by a number of common perspectives in the working group reports and the advancement of innovation."

"From our perspective, this work is an essential part of our commitment to the growth of the province's largest industrial sector," noted James Flaherty, Ontario's Minister of Enterprise, Opportunity and Innovation. "When I convened an automotive summit several months ago, I committed to improving our automotive competitiveness. The partnerships involved in our CAPC process are the foundation for doing so."

The CAPC was created following the National Forum on Automotive Innovation and Investment in June 2002, and held its inaugural meeting in September 2002. Its membership comprises the presidents of Canada's automotive assembly companies; senior executives from the parts, aftermarket, dealership and academic sectors; the president of the Canadian Auto Workers Union; and ministers of industry/economic development for the federal, Ontario and Quebec governments.

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