The General Motors and
Ford ratings cut may have some big effects on Ontario"s economy. The two big
car-makers were recently in the news with the provincial government awarding
them big subsidies to build more overcapacity, er, new, more efficient flexible
manufacturing plants. There are an estimated 331,000 direct and indirect jobs
in the auto industry in Canada. Of those, there are 50,000 workers directly
employed in assembly plants. Automobiles account for 45% of Ontario"s total
exports, and there are 16 assembly plants in Ontario, 2 making heavy trucks and
14 of them making light vehicles. There are also 554 auto parts manufacturers
in Canada. While there are other manufacturers than the North American three,
the largest employers are GM, Ford and DaimlerChrysler.
Looked at another way, one in seven Canadians is directly or indirectly
employed in the auto industry, one in six in Ontario. The car industry is the
biggest single contributor to Canadian GDP, accounting for 12% in Canada
overall, and 20% of Ontario"s GDP. Ontario is the number two auto-producing
jurisdiction in North America, after Michigan.
