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2019 Annual Industry Review

Japan Automobile Manufacturers Association of Canada The Driving Force of the 4 Canadian Auto Industry

Staying The Course 6

Putting Canada in the Driver’s Seat 7

Strengthening Partnerships 8 Through Open Trade

Manufacturing Plants in Canada 10

JAMA Canada member operations 14

2018/2019 Japanese- 16 Auto Manufacturing In Canada

New and Recent Developments 18

New JAMA Canada Directors in 2019 20 01

Key Industry Metrics 2018 2017 % Change The Driving Force of the 46.5% Total Canadian Light 1,984,992 2,038,798 -2.6% Vehicle Sales Canadian Auto Industry 46.5% Nearly half of Canada’s light Japanese-Brand Sales 733,318 719,807 +1.9% Growing Localization Since 1965 vehicle production in 2018

Production Share 36.9% 35.3% -

Total Canadian Light Vehicle Production 1,999,691 2,180,488 -8.3% 1.3 Vehicles Japanese-Brand Sales 930,140 1,001,746 -7.1% Built for every one sold in

Canada, 5th year of Record Sales Production Share 46.5% 45.9% -

Japanese-brand automakers first arrived in soon after. Since 1965, approximately Japanese-Brand Canada back in 1965 – emerging global players 17.2 million Japanese-brand vehicles have Exports 726,838 795,980 -8.7% eager to establish their place in North America’s been sold to Canadians. market. Ever since, the auto industry in Imports from 198,756 188,591 +5.4% 83,761 Canada and around the world has undergone With a relatively small domestic market in Canadian directly and

constant and dramatic change: including Canada, the heart of this growing localization Imports from indirectly employed 294,410 305,826 -3.7% oil shocks, stricter regulations, trade policy, has been trade liberalization, from the Auto Europe intense competition, currency fluctuations and Pact to NAFTA, along with a highly skilled Total employment- disruptive technologies, just to name a few. and globally competitive Canadian workforce. direct & indirect 83,761 80,531 +4% Fortunately, Japanese automakers were ready, What’s more, Canada has new diversified trade Vehicle/parts plants 33,162 33,025 0.4% resilient and up to the challenge. agreements with Asia Pacific (CPTPP) and 210,000+ Europe (CETA), which promise to continue Canadian jobs supported through direct, Head/regional offices 2,258 2,201 +2.6% With rising sales and market share, the first to level the playing field and offer new intermediate, and -off employment,

Japanese auto manufacturing plant in Canada opportunities for expanded trade. according to a 2019 study Dealerships in 48,341 45,305 +6.7% opened in Alliston in 1986, and others followed Canada (est)

4 Annual Industry Review – 2019 Annual Industry Review – 2019 5 02 03 Staying The Course Putting Canada in

A renewed focus on steady, Unrivalled Growth the Driver’s Seat long-term growth Japanese-brand auto manufacturing output in Canada has nearly doubled Celebrating over 50 years

since 2000 of contributions and economic With a pragmatic belief in ‘building where you sell,’ growth in Canada Japanese automakers have steadily strengthened their commitment to the Canadian auto industry, $$$ creating high-quality jobs in distribution, sales, service, manufacturing, exporting, and importing motor vehicles $12.7 Billion and auto parts. In fact, we build more vehicles than we Cumulative investment in auto

sell and export more than we import. manufacturing since 1986, plus $1.9 billion

announced in 2017 / 2018 The is inextricably linked to on with a long-term commitment to Canada. Canada’s Japanese-brand auto industry remains resilient economic prosperity in Canada. Recent reports In 2019, Motor Corp reaffirmed its in the face of global trade and economic uncertainty have identified Canada’s automotive industry commitment to manufacturing in Canada, over the past year. While Canada’s trade-dependent as the second largest manufacturing industry, announcing plans to assemble the economy derives significant benefits from the robust, adding an approximate $18 billion a year to NX, a compact luxury , at the plant 14 rules-based global trade system, it is also important for 17.2 Million GDP, $86 billion a year to Canadian exports, in Southwestern Ontario. This continued JAMA Canada members that our success continues to 17.2 Million: Vehicles sold in Canada and employing over 126,000 people directly and investment in Canada give manufacturers

be a made-in-Canada story. since 1965 half a million people indirectly. Yet, the market the opportunity to assemble SUVs that have is in flux. Consumer interests are changing. The previously only been built in Japan and will market for mid-sized is declining rapidly, secure more long-term growth in the Canadian shifting towards trucks, SUVs, and crossovers. auto sector. Despite the challenges, Canada is benefitting 19.3 Million from innovations by technology startups and a

19.3 Million: Vehicles built in Canada since skilled engineering and technical workforce.

1896, on track to reach 20 million in 2019 In the same vein, Japanese- are soldering

6 Annual Industry Review – 2019 Annual Industry Review – 2019 7 04

Strengthening Liberalized trade and open global competition bring greater choice, along with innovation in vehicle safety, Partnerships lower emissions, higher fuel efficiency and alternative Canada is a net exporter Net exports from Canada power trains. Modernizing NAFTA and diversifying trade of Japanese brand vehicles Imports from Japan, US, , and others Through in the CPTPP will level the playing field on import vehicle tariffs and strengthen the trade relationship between Open Trade Canada and Japan. Since 1993, Canada has exported 5 million more Japanese-brand vehicles than were imported from Japan and all countries during the same period.

5 million net vehicle exports since 1993 Over the past 53 years, the growing presence of JAMA

Canada members has helped raise the competitiveness 900 of the Canadian auto industry and continues to push the 800 boundaries of design, engineering, and innovation for

the benefit of consumers, associates and team members, 700 suppliers and dealers across Canada. 600

500

400

300 78%

200

x 3.7 70.6% 78% 100

1987 1990 1995 2000 2005 2010 2015 In 2018, Canada exported 3.7 times of Japanese-brand sales in Canada Export ratio: Canada exported more Japanese-brand vehicles than were built in NAFTA in 2018 over 726,000 Japanese-brand

it imported from Japan vehicles in 2018

8 Annual Industry Review – 2019 Annual Industry Review – 2019 9 05 Manufacturing Plants in Canada Ontario

Light vehicle, truck and engine production

Auto parts

Materials, machine, tools, sub-assembly and services

British

Columbia 8 Joliette 5 Delta 7 Quebec Waterville 6 Coaticook

10 Annual Industry Review – 2019 Annual Industry Review – 2019 11 06

Manufacturing Light Vehicle, Truck 17. INOAC Interior Systems LP 39. Takumi Stamping Canada Inc. 55. Horiba Automotive Test Employment In Canada and Engine Production 18. ABC INOAC Exterior Systems 40. Arvin Sango Canada Inc. Systems Inc. 19. Trimont Manufacturing Inc. 41. TG Minto Corporation - 56. Canada, Inc. 1. of Canada 20. Listowel Technology Inc. Stratford Plant (Woodstock) Vehicle Manufacturing 12,832 Manufacturing (2 vehicle 21. ACG Automotive Canada Inc. 42. Howa Canada 57. Tsubaki of Canada Ltd. and 1 engine plant, Alliston) 22. Dyna-Mig, A Division Manufacturing Inc. 58. NGF Canada Limited Auto Parts 17,550 2. Toyota Motor Manufacturing of F & P Mfg., Inc. 43. Blenheim Interior Trim 59. Green Metals Canada, Inc. Canada (Cambridge North 23. Sanoh Canada, Ltd. 44. THK Rhythm Automotive 60. Maple Automotive Corp. Materials, Machine Tools, and South plants) 24. Jefferson Elora Corp. (St. Catharines) (Woodstock) Sub-Assembly & Services 2,780 3. Toyota Motor Manufacturing 25. KTH Shelburne Mfg. Inc. 45. THK Rhythm Automotive 61. Toyota Tsusho Canada, Inc. Canada (Woodstock) 26. Kumi Canada Corporation (Tillsonburg) (Cambridge) Total: 33,162 4. Canada, Ltd. 27. Musashi Auto Parts 46. Hi-Tec Canada 62. Autrans Corporation Canada Inc. Ingersoll Plant Auto Parts 28. Manufacturing Materials, Machine Tools, 63. Jervis B. Webb Company Canada, Inc. Sub-Assembly & Services of Canada, Ltd. 5. CAPTIN Auto Parts (BC) 29. Showa Canada Inc. 64. KWE Guelph 6. Waterville TG (Coaticook) 30. Waterville TG Ontario 47. Sanyo Canadian Machine 65. Omron Automotive 7. Waterville TG Inc. (Waterville) 31. TG Minto Corporation Works Inc. Technologies 8. Canada Inc. 32. FIO Automotive Canada Corp. 48. Canada Mold Technology Inc. 66. Simcoe Parts Service Inc. (Joliette) 33. Canada Inc. 49. SMC Pneumatics (Canada) 67. Canada 9. NTN Bearing Mfg. Canada (Woodstock) Ltd. 10. F & P Mfg Inc. 34. Amino North America 50. DJ Galvanizing 11. TRQSS, Inc. Corporation 51. Coilplus Canada Inc. 12. MSSC Canada 35. Toyotetsu Canada, Inc. 52. Durez Canada Company, Ltd. 13. TS Tech Canada Inc. 36. Toyota Boshoku Canada Inc. 53. Maple Automotive Corp. 14. Vuteq Canada Inc.. (Elmira) (Cambridge) 15. Freudenberg-NOK 37. Canada Inc. 54. Kintetsu World Express 16. Tasus Canada Corporation 38. Hayashi Canada Inc. (Canada) Inc.

12 Annual Industry Review – 2019 Annual Industry Review – 2019 13 07 Type of 1. Head office JAMA Canada member Operation 2. Regional office / sales & service reps / parts distribution facility operations 3. Vehicle manufacturing & assembly plant 4. Parts manufacturing plant 5. Port / transportation facility 6. R&D

British Columbia Alberta Ontario

Hino: 2 Honda: 2 Hino: 1, 2, 3, 4, 5, 6

Honda: 2 : 2, 3, 4 Honda: 1, 2, 3, 4, 5, 6

Mazda: 2 Toyota: 2 Mazda: 1, 2, 3, 4, 5, 6

Mitsubishi: 3, 4, 5, 6 : 1, 2

Nissan: 2, 3, 4, 5, 6 Nissan: 1, 2, 3, 4

Subaru: 2, 3, 4, 5, 6 : 1, 2, 3, 4, 5, 6

Toyota: 2, 4, 5 Toyota: 1, 2, 3, 5, 6

Quebec Nova Scotia

Hino: 2 Honda: 2

Honda: 2 Subaru: 2, 3, 4, 5, 6

Mazda: 2 Toyota: 2

Nissan: 2, 3, 4

Subaru: 2, 3, 4, 5, 6

Toyota: 2, 5

14 Annual Industry Review – 2019 Annual Industry Review – 2019 15 08 Locations 350, RX450h Cambridge, Ontario Woodstock: Toyota RAV4 2018/2019 Woodstock, Ontario Employment Japanese-Brand Start-up 8,500 + November 1988 (Cambridge) Auto Manufacturing November 2008 (Woodstock) Production 497,371 (2018) In Canada Cumulative Investment $8.5 billion Export: (export ratio) Cumulative Investment 405,502 - 2018 (81.5%) $4.7 billion Toyota Motor Vehicles Built Manufacuring Cambridge North: Corolla Annual Capacity Vehicles Built (transition to RAV4 production) 500,000 units (2 shifts) Plant 1: Civic Coupe/Sedan Canada (TMMC) Cambridge South: Lexus RX Plant 2: CR-V Engine Plant: 4 cylinder Location Employment: Employment Woodstock, Ontario 132 4,200 Start-up Production Honda of Canada Production April 2006 2,873 (2018) Manufacturing 432,786 (2018) Cumulative Investment Export: (HCM) Export (export ratio) $3 million (equipment only) at For Canada only Location 321,366 - 2018 (74.3%) start-up Alliston, Ontario Annual Capacity: Annual Capacity Vehicles Built 2,000 units (1 shift) Start-up 400,000 vehicles HINO Motors Class 4-7 medium duty trucks November 1986 & 260,000 engines (2 shifts) Canada, Ltd. Class 8 heavy duty truck (2019)

16 Annual Industry Review – 2019 Annual Industry Review – 2019 17 market,” TMMC President Fred Volf told Team continue to play an important role within dealerships, it’s now a national network of Members and dignitaries, including the Right Toyota’s global production strategy,” said Jim more than 600 auto, motorcycle and power Honourable Justin Trudeau, Prime Minister of Lentz, chief executive officer for Toyota Motor equipment dealers. The company is also a Canada and The Honourable Christine Elliott, North America. major Canadian auto manufacturer, proudly Deputy Premier of Ontario and Ontario Minister building the Honda CR-V and the Honda Civic, of Health and Long-Term Care, at an event TMMC has manufactured vehicles in Canada Canada’s best-selling passenger car for the earlier today. for more than 30 years and currently employs past 21 consecutive years. Through the Honda more than 8,500 team members at its facilities Canada Foundation, the brand is committed In 2003, TMMC became Toyota’s first facility in Cambridge and Woodstock, Ontario. to giving back to communities across Canada, entrusted to produce Lexus vehicles outside of Committed to producing vehicles in Canada, contributing more than $2-million to local 09 Japan – a tremendous honour within Toyota – Toyota has invested more than CDN $8.5B in its charities each year. and has since made more than 1.3 million Lexus Canadian operations since 1985, and has built New and Recent RX and Lexus RX Hybrid vehicles. more than eight million vehicles over that period “Honda planted roots in Canada with a vision of time. of contributing to Canadian society. We are Developments In 2018, TMMC announced a CDN $1.4B proud of our associates, dealers, partners and investment (including supporting funds from the Honda Canada celebrated 50 years of growth suppliers, who have played an important part Toyota Motor Manufacturing Canada federal and provincial governments), converting and success in Canada during a commemorative in our growth and have helped improve the (TMMC) announced in April 2019 that it will its North and West plants to the company’s ceremony at the company’s head office near communities where we live and work,” said begin producing the top-selling Lexus NX and Toyota New Global Architecture (TNGA) Toronto in March 2019. Honda Canada has Dave Gardner, President & CEO, Honda Canada Lexus NX Hybrid compact luxury SUVs at its platform to allow for increased flexibility, further sold more than four million vehicles since Inc. “We’d also like to thank the millions of Cambridge, Ontario facility starting in production efficiency, and superior products. incorporating on March 11, 1969 and was the Canadians who are loyal members of the Honda early 2022. This strategic investment allowed TMMC to first Japanese automaker to build vehicles family. We look forward to growing with you for shift its production to meet the demands of in Canada. the next 50 years.” “Building on our recent Toyota RAV4 North America’s rapidly growing compact SUV announcement and our recent facility market, most notably through the production of From modest beginnings as a small network modernization investments, we are excited to the Toyota RAV4 and Toyota RAV4 Hybrid. of motorcycle and power equipment dealers, announce that TMMC has been selected to Honda Canada has grown substantially. With produce the popular Lexus NX and Lexus NX TMMC and team members have won multiple nearly 19,000 associates employed across the Hybrid models for the entire North American international awards for plant quality, and country in manufacturing, sales offices and

18 Annual Industry Review – 2019 Annual Industry Review – 2019 19 09 New JAMA Canada Directors in 2019

Mitsubishi Motor Sales Hino Motors Canada Hino Motors Canada announced the appointment of Eric Smith Mitsubishi Motor Sales of Canada has named Juyu Jeon (JJ) of Canada to the position of President and Chief Operating Officer of Hino to the position of President & CEO as of April 1, 2019 replacing Motors Canada effective February 1, 2019. Eric succeeds Yumiko Tony Laframboise who served in the role for the past two years. Kawamura who held the position for three years and has now Mr. Jeon was previously Vice President, Sales & Marketing, returned to Japan to be assigned to the role of General Manager Corporate Planning and Business Control for the company. for the North American Division of Hino Motors Ltd., supporting He joined Mitsubishi Motor Sales of Canada in March 2017. A Canada and USA markets. Eric’s career at Hino started in 2007, seasoned global automotive executive, Mr. Jeon joined Mitsubishi serving most recently as Senior Vice President, Sales and Motors in 2005 and held a variety of positions of increasing Customer Support. Under his leadership, both truck sales and responsibility in the U.S., Latin America, the Middle East, Africa market share have nearly tripled. The dealer network, parts sales and Australia before joining in Canada. Mr. and retail service visits have also grown dramatically during this Jeon played a critical role in strategic corporate planning that time. Eric becomes the first Canadian-born president of HMC. led to the repositioning and growth of the brand in key global markets for Mitsubishi Motors Corp.

Nissan Canada Mazda Canada Mazda Canada announced the appointment of David Klan to the Nissan Canada announced the appointment of Steve Milette position of President & CEO, effective April 1, 2019, succeeding to the position of President on May 1, 2019. Succeeding Joni Masaharu “Massey” Kondo, who has been promoted to General Paiva, who was appointed promoted to regional vice president, Manager, Global Sales and Marketing Division at Mazda Motor marketing and sales, for Nissan’s Africa, Middle East and Corporation (MC) in Japan. A 27-year veteran of Mazda, David India (AMI) region, based in Dubai, Steve will have day-to-day has held numerous executive positions globally since he started in responsibility for all Nissan operations in Canada, including sales 1992, in Canada, Japan and the US. Since returning to Canada in and marketing, finance, dealer network, product and corporate 2009, David has led the company’s national sales, marketing and planning, aftersales, legal, human resources and the captive sales regional operations as Senior Director. David is the first Canadian finance company. Steve’s promotion represents the first time a to be appointed president of Mazda Canada since 2006. Canadian has held the position of president at Nissan Canada.

20 Annual Industry Review – 2019 Annual Industry Review – 2019 21 22 Annual Industry Review – 2019 Annual Industry Review – 2019 23 Japan Automobile Manufacturers Association of Canada

151 Bloor Street West, Ste 840, 416-968-0150 www.jama.ca Toronto, ON M5S 1S4, Canada [email protected]