CAPC - News Release - November 03, 2004

CANADIAN AUTOMOTIVE PARTNERSHIP COUNCIL REVIEWS PROPOSALS TO ENHANCE INDUSTRY'S COMPETITIVENESS

Ottawa, November 3, 2004 - The Canadian Automotive Partnership Council (CAPC) met today to discuss actions that need to be taken to strengthen the competitiveness of Canada's automotive industry.

With Co-chairs Michael Grimaldi, President of General Motors of Canada Ltd., and Don Walker, President of Intier Automotive Inc., CAPC members discussed the organization's recently released report called, "A Call for Action: A Canadian Auto Strategy." This report highlights CAPC's progress over the past two years, and presents a roadmap for future actions, identifying the areas that represent the highest priority for short-term action. The five critical areas are: large-scale investment incentives, infrastructure, innovation, regulatory harmonization and human resources. Border issues have specifically been identified as an important area, and have been acknowledged by federal and provincial governments as a priority.

The Council examined the progress and priorities of its seven working groups' recommendations in the areas of fiscal and investment policy, human resources, innovation, regulatory harmonization, sustainability, trade infrastructure and international trade.

"The CAPC report presents a framework for developing a competitive national automotive strategy and a system to monitor our progress over time. The report also outlines a strategic vision and action plan for increasing investment and innovation in the Canadian automotive sector," said Don Walker.

Commenting on the CAPC working groups, Michael Grimaldi, remarked: "I've been impressed by the collaborative spirit and progress achieved so far by this Council, and I am convinced our collective effort can drive a huge return on investment for Canada. It is important that we continue with a shared sense of urgency and accountability."

"CAPC members have worked very hard for the past two years to help identify the challenges facing the automotive industry, and I thank them for their efforts," said the Honourable David L. Emerson, Minister of Industry. "I look forward to working with CAPC to advance Canada's future competitiveness in the auto sector, which is Canada's largest manufacturing sector and a priority for this government. The Council's report will be an important contribution to the Government of Canada's development of a national automotive strategy."

"The Council's recommendations are extremely important in developing an effective, long-term strategy for our auto industry," said the Honourable Joseph Cordiano, Ontario Minister of Economic Development and Trade. "Ontario's auto sector is a key economic lever for the province, and this collaborative approach between industry and governments will help it remain competitive and job-creating for years to come."

The Honourable Michel Audet, Quebec Minister of Economic and Regional Development and Research, has reiterated the willingness of Quebec to actively participate in the industry's development, as well as the province's support for the Council's work. "The actions taken by Quebec for the consolidation and development of its automobile industry are based on innovation and light materials, as well as new-generation vehicles. As such, they are in line with the priorities identified by the Council," added Minister Audet.

A smooth, seamless and efficient border is critical to ensure competitiveness and enhance our manufacturing base. "It is absolutely essential that we make rapid progress on infrastructure at border crossings in Windsor, Ontario, where the majority of automotive parts and goods are transported. This includes cohesive trade and security plans on a multilateral level, incorporating contingency and redundancy planning," said Mark Norman, Chair of the CAPC Trade Infrastructure Working Group.

Building on the CAPC Interim Report, CAPC will focus its efforts on implementing and tracking the joint industry and government progress against its goals and working group recommendations. A meeting with the Prime Minister and other Cabinet Ministers is planned to review the CAPC report, priorities and next steps.

ABOUT THE CANADIAN AUTOMOTIVE PARTNERSHIP COUNCIL

The Canadian Automotive Partnership Council is a private sector-led group, which was launched in September 2002. It is composed of senior executives from industry (assembly, parts manufacturers and distributors and dealers), labour and academia, as well as the industry and economic development ministers from the governments of Canada, Ontario and Quebec. The mandate of the Council is to identify actions to strengthen the Canadian automotive industry in the short and long term.

For more information and to read the report, "A Call to Action: A Canadian Auto Strategy", please visit http://capcinfo.ca.

MEDIA CONTACTS:

CAPC private sector (for Michael Grimaldi and Don Walker): David Paterson (905) 644-6308
Government of Canada: Stéphanie Leblanc (613) 995-9001
Province of Ontario: Lisa Roberts (416) 325-6706
Province of Quebec: Gilles Demers (418) 691-5656