Some of you might find this interesting. There's a great deal left out though, I included it on a 2nd post down below: http://news.yahoo.com/s/ap/20050716/ap_on_bi_ge/chasing_canada Motor City Getting Northern Competition By KATHY BARKS HOFFMAN, Associated Press Writer Sat Jul 16, 9:49 AM ET LANSING, Mich. - Ever since the first Model Ts rolled off Henry Ford's assembly line, Detroit and its surroundings have been the capital of the U.S. auto industry. But now, thanks to cheap health care and changing tastes in cars, its Canadian neighbor is challenging it for the title of North America's top producer. Michigan last year alone built roughly 2.6 million Chevrolet Silverados, Ford Mustangs, Jeep Grand Cherokees and a host of other models. But that wasn't enough to hold off neighboring Ontario, Canada, long a car-building center but largely in Detroit's shadow. Separated from Michigan by lakes Huron, St. Clair and Superior and an occasional river, Ontario produced nearly 103,000 more vehicles than Michigan last year. Model changeovers which forced Michigan plants to close for part of 2004 to retool for producing new models are partly to blame, according to WardsAuto.com, which tracks industry trends. But there are other, more complicated factors at play, such as health care costs and chronic market-share declines for Detroit's Big Three automakers, experts say. Detroit's Big Three General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler Group have shed thousands of jobs and closed U.S. plants to remain competitive while foreign automakers beefed up operations in Ontario. "If it was Ford gaining at the expense of GM, it wouldn't matter," said Thomas Klier, senior economist with the Federal Reserve Bank of Chicago. But it's companies such as Toyota Motors Corp. and Honda Motor Co. that are growing, he said, and they're growing outside Michigan. "It comes down to geography," said Klier. Even in Canada, the Big Three face issues with their unionized workers that their nonunionzed foreign competitors largely sidestep. GM, Ford and Chrysler hope during talks beginning next week that they'll be able to negotiate new contracts with the Canadian Auto Workers that will help them trim costs. But CAW President Buzz Hargrove already has told his members the CAW won't accept calls to cut growth in wages, benefits and pensions during negotiations. There's increasing tension and widening perspectives on whether cutbacks are necessary at Big Three operations in Ontario. No such problems plague Toyota, which two weeks ago announced it will open a $650 million assembly plant by 2007 in Woodstock, Ontario to build up to 100,000 small sport utility vehicles a year, saying it chose Ontario in part because of growing demand for SUVs in that region. Skyrocketing U.S. health care bills, which the Big Three cite as one of their biggest obstacles for competing with foreign automakers, are another factor. Canada is attractive because it subsidizes much of workers' health care tabs, said Jim Donaldson, vice president for business development at the Michigan Economic Development Corp. He noted health care expenses for GM's current and retired U.S. workers add about $1,400 to every vehicle it makes. "If all other costs are similar, that would be one of the things that would favor building in Canada," Donaldson said. Ontario's success also is tied to a Canadian $500 million fund the province created to attract automotive projects. In the past year alone, Ford, GM, Toyota and others have committed to Canadian $5 billion in new investments in the province. Ontario also is working hard to attract more research and development and has established a new engineering degree specifically for the automotive field. "We're trying to put our auto sector on the most competitive footing for the next generation of products and the next generation of worker education," said Joseph Cordiano, Ontario's minister of economic development and trade. Michigan already touts a concentration of auto-related businesses, a well-trained work force and an education system set up to turn out automotive engineers, materials specialists and designers and to train workers for sophisticated manufacturing jobs. The state has created a seven-point strategy that includes attracting international automotive investment and helping domestic companies develop international business strategies. Gov. Jennifer Granholm has drawn up a business tax proposal that would lower manufacturers' bills and she and other state officials are aggressively pursuing foreign auto-related firms and suppliers. "It's not the same world as it was 10, 20, 30 years ago. We need to take advantage of the global economy," Granholm said in an interview with The Associated Press. For the moment, Michigan has regained the lead over Ontario in motor-vehicle manufacturing and it might hold the edge for the rest of the year. But WardsAuto.com expects Ontario to retake the title in the next few years. Still, Michigan has its success stories. GM next year will open a new assembly plant west of Lansing that will employ up to 3,000 workers, replacing century-old Lansing plants that closed this spring. And DaimlerChrysler this fall will begin making a new generation of four-cylinder engines at a $700 million plant in Dundee, southwest of Detroit. The state scored a victory earlier this year when Toyota committed to building a $150 million R&D center near Ann Arbor after Granholm and the Michigan Legislature helped secure land for the deal. The state also granted a tax credit worth $38.9 million. "If you want to expand your technical research, you have to be in Michigan because that's where most of the engineers are," said Dennis Cuneo, senior vice president for Toyota Motor North America. "That type of thing builds on itself." Despite the fierce competition, Ontario and Michigan officials say they're happier to see new auto-related work go to each other than to states in the South because it lifts the region's overall economy. "We are our biggest trading partners and each others' biggest allies," Cordiano said. "We never forget that."
Historical significance, I'm quite active on The History Channel's website (for some 7-8 years now, where I'm known as Marmat), mainly WWII, some ACW and 1812. I did up the following post in response to issues regarding the WWII CMP or CMPC i.e. Canadian Military Pattern Chassis truck, that some of you might find of interst too: In early 1937 Ford of Canada was approached by the British Army to produce 15 cwt military trucks similar to those built in the UK; General Motors of Canada also participated. The result, known as the 3 ton "Canadian Military Pattern Chassis" (CMPC), was tested at Camp Petawawa, gave a good account of itself, and was upgraded to 4X4 as standard equipment, no orders were placed at that time but it remained in being. After the BEF left almost all of its equipment in France, the British Army placed a preliminary order for 7,000 CMPC's, and by 1941 Canada was the primary supplier of the British Empire's trucks. In practice Canadian Fords and Chevys were much like their US cousins, standardised, durable and reliable, the standard 3 ton CMPC was adapted to 8, 15 and 30 cwt., 4X4, 6X4 and 6X6. The model types showed huge variation in cab and body, GP, ambulance, "wireless" HQ veh., tankers, recovery vehicles, some were even armoured and served as mobile gun carriages. They went and could be seen everywhere. For example those unusual looking cab over trucks that you see in films carrying British troops and supplies in the Desert, Italy, and France are actually Canadian Chevy C60l GS CMPC trucks with Ford of Canada drivetrains. Also the CMPC was exported as a pre-fab. kit; Canadian Ford drivetrain, chassis and cab, the locality provided the body from local materials. For example Australian built medium and heavy trucks were in reality CMPC pre-fabs with only locally made bodies, assembled by Ford west of Melbourne. Numbers? Somewhere between 900,000 and 1 million military trucks were built in Canada (CMP's and modified conventional types, CMP's making up half or so) including the pre-fabs which were finished elsewhere. German Opel production of their similar Blitz was only 1/10th of that or 95,000, of which only 25,000 were 4X4. To give further contrast and perspective, Canadian military truck production was close to double the total output of military trucks of Germany and the USSR combined. Likewise, twice as many Canadian military trucks were produced than all the military trucks produced in the UK. Comparatively, in the US GMC built some 800,000 of their "deuce-and-a-half" 2 ton "Jimmy's", Studebaker built some 200,000 of their much loved 2 tons trucks. On a per capita basis Canadian autoworkers built between 3-4 times more military trucks than their cousins south of the border, granted it was over 5 years as opposed to about 4 years in the US but still quite an accomplishment. This is rarely mentioned because the Allies tended to pool trucking resources plus Canadian Chevy's & Fords tend to be lumped into the US total simply because of their names. No European automaker could touch either American OR Canadian automobile producing expertise, and to this day 80% of the automobiles built in Canada are exported. Historical background: First of all, US firms with subsidiaries in Canada, such as the auto makers, invested a great deal of capital very early in the war. The US was still feeling the effects of Depression, Canadas entry into war virtually guaranteed a measure of war profit for investments made, which could otherwise be hindered by US Neutrality laws; some Americans did indeed react to the British & Canadian government requests for assistance nuff said. The beginning is a good place to start. First of all Gordon McGregor, and his 2 brothers, of the Walkerville Wagon Co., not Henry Ford or one of his minions, formed Ford of Canada in Walkerville Ont. (now Windsor) in 1904, the year after Henry Ford began production in Detroit; management was Canadian, at least initially. Detroit, at the turn of the century may have been a hub for carriages etc., but it also had the distinction of being across the river from Windsor, and access to sales to the whole British Empire. The problem of a 35% tariff on carriages of all kinds entering Canada, was eased by a preferential tariff from Canada to the rest of the Empire in other words the 2 industrial towns grew in the area at the same time, Canadian Fords were peddled Empire wide. Likewise with GM (and my neck of the woods). Col. R.S. Sam McLaughlin of Tyrone/Oshawa Ont. converted his carriage works to eventually producing automobiles with Buick engines, then car bodies for William Durant, and Buick of Detroit. He later produced Chevys for Durant, then in 1918, McLaughlin Motor Co. Ltd. merged with Chevrolet Motor Co. of Canada to form General Motors of Canada, with McLaughlin as Pres. and VP of the parent Co. He retired from actively running the Co. in 1942, but remained at CEO until 1967; but still, Canadian management at the senior level. The Chrysler Corporation of Canada (renamed Chrysler Canada in 1963) was formed in 1925 out of the Maxwell-Chalmers Corporation of Canada, much like in the US; Maxwell Motor Company of Canada and Chalmers Motor Company of Canada had been producing cars in the Walkerville area since 1916. As far as the parting out/assembly issue goes, the process was not lost on the Canadian Government, which passed the first auto industry Canadian Content legislation in 1926, more Tariff Board hearings were held in the mid-30s for clarification (and the Royal Commission on the Automotive Industry and APTA in the 60s), which gave further impetus to the Canadian autoparts industry. Now we come to the modern era which this statement reflects i.e. The relationship between the US and Canadian manufacturing bases is surprisingly equitable based on population., which is only partially correct, because in fact it is based on figures for the 1964 model year. As already stated, APTA/Autopact or the Canada-US Automotive Products Agreement was signed in 1965. In short, its a conditional free-trade agreement signed by Canada and the US in January 1965 to create a single North American market for passenger cars, trucks, buses, tires and automotive parts. Under the agreement, subject motor-vehicle manufacturers are obliged to maintain the same ratio of production to sales in Canada as existed in the 1964 model year, to maintain Canadian value-added or Canadian content equal to the 1964 model year; and have been required (from 1965 onwards) to increase Canadian value-added by 60% of the growth in the value of passenger cars sold (50% for trucks and 40% for buses). Between 1965 and 1982 Canada had an overall automotive trade deficit of$12.1 billion with the US, but since 1982 Canada has had a continuing surplus with the US. In 1982-86 exports were $135.5 billion and imports were $112.9 billion, for a 5-year surplus of $22.5 billion; and rising, over 80% of vehicles produced in Canada are exported. The subject auto assemblers also produce nearly half of the value of parts and components going into vehicle production, a further 40% of original equipment parts are produced by some 450 Canadian owned companies, the rest by the 12 largest independent multi-national parts companies. Also the auto industry consumed some 14% each of Canadian iron foundry, and processed aluminium production, 11% of rubber production, 7% machine shop products, 9% wire goods, 6% carpeting and fabrics, and 9% of glass products. The 2 principal purposes of the Autopact were to lower Canadian production costs through more efficient production of fewer lines of motor vehicles and parts, and to lower consumer prices. However, since the Autopact, Canadian subsidiaries are less autonomous than they once were, and comparatively little is now spent on research and development in Canada. That reflects today, now back to WW2. The autoparts industry that resulted from Canadian Content legislation allowed Canadian heavy industry like C.P. and C.C.F. of Thunder Bay Ont. to produce such varied products as Valentine tanks, then Rams and Sherman/Grizzlies; Hawker Hurricanes before switching to Curtiss Helldivers. Plus as Ive already stated, the CMPC was a major Canadian military truck export. It was primarily designed by Ford of Canada in 1937, to British Army specs., some of the parts, at least early on, were imported from the UK. In fact, whats often left out is that the CMPC was right hand drive i.e. for driving on the "wrong" side of the road, and remained so throughout its production. I speak from experience, not all that long ago I caught a 25 pdr. and limber on display, in pristine condition. The limber was a CMPC alright, this one a Chevy built in 1944 at the Oshawa plant for the Canadian Army, and sure enough right hand drive. As far as design and specs., it owed far more to Morris and Humber than it did to Detroit, thats not to say that the design of the engine and various components, and parts didnt come from Detroit. As Massachusetts born, M.I.T. educated Clarence Decatur Howe, father of Air Canada, Canada's Minister of Munitions and Supply 1940-45, and Chairman of the Canadian Mutual Aid Board said early in the war, "Never again will there be any doubt that Canada can manufacture anything that can be manufactured elsewhere." Extra info. (cut'n'pasted from a website on same) Ford CMP vehicles used engines from both Canadian and United States factories although the Canadian engines were far more common. All Canadian built Ford engines in CMP trucks are prefixed with *G and suffixed with the letter F. The prefix number denotes the engine model year, eg. 1G is 1940, 2G is 1941, etc. The "G" denotes a truck engine fitted with a four-speed gearbox. The suffix F means an export engine for right hand drive vehicles. American engines usually have an engine number like this one 99TF562348. Ford V8 engine numbers are not stamped on the engine itself but are stamped on the clutch housing. This was a long time Ford practice that was allegedly commenced in the 1930's by Henry Ford to allow vehicle engine changes to be carried out with having to alter license paper details. Without engine numbers, it is still fairly easy to estimate a Ford V8's approximate age. 1940 -1941 engines are fitted with an ignition distributor which featured ignition coils built into the distributor cap. The shape of the distributor cap is similar to that of a deep-sea diver's helmet and hence is known as the Diver's Helmet type. These engines were fitted to vehicles with the No 11 and 12 cabs. 1942 - 1944 engines have a flat distributor cap with four ignition leads coming out each side. This cap is known as the Crab Type distributor. Finally the 1945 engines have a conventional type rotary distributor similar to those in use in modern vehicles fitted on the right front of the engine. Some Ford F15, F60S and F60L vehicles were fitted with General Motors front and rear axles. For ratios of these axles, go to the Chevrolet Technical Page. The Ford parts books also indicate that some vehicles were fitted with General Motors two speed transfer cases. (GM of Canada first talked of using the 248 in 1939 in military trucks, but records show that Windsor Plant did not start local assembly of GMC engines until August 1940 so my guess is that they went to the 270 from the beginning. If you really want to know how pitiful the performance would have been see the reports in 1938 of the 216-powered Chevrolet-Scammell 6 x 4! The WD tried similar chassis from Bedford and Dennis and the performance was so awful that they dropped the idea and went over to 4 x 4 chassis instead.) You'll note from the photo below (and the bowtie on the rad), that most of those "British" trucks that you see in documentaries on WWII hauling supplies in North Africa, Italy and France aren't British at all, they're in huge part, Canadian Chevys and Fords. Most of Monty's 8th Army transport before El Alamein came from the Great White North.
