AUTO INDUSTRY 2020 AND BEYOND DON WALKER CEO
Topics for Today • CAPC • USMCA • BCC • Global Automotive Industry
CAPC VISION To be the location of choice for automotive manufacturing within North America, driven by an environment that is globally competitive, promotes research and innovation, and develops the people, skills and technology necessary to succeed today and in the future. Priorities Competitiveness Innovation Talent Investment
CAPC Committee Manufacturing Competitiveness Dean Stoneley, Ford Regulatory Efficiencies Dean Stoneley , Ford Competitiveness Frank Voss , Toyota Borders and Infrastructure Reid Bigland , Fiat Chrysler Jerry Dias, Unifor Advanced Manufacturing and Linda Hasenfratz , Linamar Productivity Improvements Innovation Next Generation Technologies Scott Bell , General Motors Talent Talent Attraction and Skills Bob Magee , Woodbridge Development Investment Attraction Investment Flavio Volpe , APMA Rob Wildeboer , Martinrea 5
Common Themes Strengthening the 1 Investment Climate Harmonizing Environmental 2 Policies Focusing on Talent 3
USMCA/CUSMA • Two Years in the Making • Importance of Auto (Jobs, Investment, Innovation) • US Objectives (Assembly Plants, Balanced, Level Playing Field) • Canada Needs to Sign • Auto Details Being Worked on
Reginal Value Content (RVC) • 60% up to 75% • Core Parts 75% by the End of Year Four • Principal 70% • Complimentary 65%
Labour Value Content (LVC) • $16 US/Hour • Define “Direct Production Worker” • Define what is included Uniform Regulation • How to Calculate • RVC, LVC, Steel/Aluminum Content • Timing
Industry Trends • Electrification • ADAS • New Mobility • Data
ADAS Penetration Rates 2% 10% 7% 21% 21% 2030 LARGEST GROWTH L1-L3 39% Level 0 Level 1 Level 2 Level 3 Level 4 Level 5 Source: Internal Magna Q4 2019 Estimated
Powertrain Electrification 10-15% 26-29% 11-17% ESTIMATED VEHICLES 70M 2030 WITH ELECTRFIED POWERTRAIN IN 2030 28-29% 17-19% EV PHEV / HEV Mild hybrid ICE Micro hybrid Source: Internal Magna
Sustainability • Industry Perception • Focus Areas -- Products & Manufacturing • Greener Initiatives – Water & Energy Conservation – Emission Controls – Waste Management
Business Council of Canada • Reduce Regulations • Significant Infrastructure Projects • Simplify the Tax System • Re-examine Foreign Policy • Increase Immigration • Develop National Resource & Climate Strategy
Vision for Canada • Economic Strategy • Education • Health care • Taxation • Innovation
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