The automotive industry supply chain is complex and dynamic. The industry includes not only assemblers, but also many parts suppliers including companies that might self-identify as producers of metal, plastic, rubber or glass products. The supply chain also includes computer and electronics manufacturers and software producers.

The largest and most visible segments of the supply chain include the vehicle assembly complexes of automotive Original Equipment Manufacturers (OEMs), some of which employ upwards of 6,000 people when operating at full capacity. These facilities in turn rely on a multi-tiered network of captive (facilities owned by OEMs such as Ford and Toyota) and independently-owned suppliers (e.g. Magna) for modules, components, parts, materials, and tooling. Many of the manufacturing facilities within these supplier networks are dedicated wholly to supplying the automotive industry (and in many cases dedicated wholly to supplying one vehicle assembly plant or higher-tier parts manufacturing facility on a just-in-time or just in-sequence basis). However, many other manufacturing facilities supply several industries in addition to the automotive industry.

Given the complexity of the supply chain, it is challenging to properly quantify the economic impact of the automotive industry. One of the goals of this project, and the focus of this report, is to develop an approach that:

1) addresses the limitations of analyses of the automotive industry supply chain that rely on a limited number of NAICS codes;
2) identifies the wide network of automotive parts and technology supplier firms and their facilities and includes both traditional manufacturers and firms that produce and develop emerging automotive technologies; and
3) captures the total employment impact of the automotive industry supply chain in Canada.

In so doing, this report demonstrates that the total employment impact of Canada’s automotive industry is substantially larger than previous reports by government or industry stakeholders suggest.