China will overtake as global vehicle output leader
TORONTO‑Canada’s automotive sector is set to lead North American production this year, according to Scotiabank Group’s Global Auto Report.
Automotive production is expected to see its largest jump here since 2009, when the sector began its recovery from the global economic crisis.
The production of the Buick Regal at GM’s Oshawa Assembly Plant and increased production at Chrysler’s plant in Brampton will add to increases in Canadian vehicle output.
The additional vehicle output is expected to add about 1.5 percentage points to Canada’s economic growth this year.
The report shows global sales volumes advancing above six per cent in January against January 2010, consistent with this year’s forecasted seven per cent increase.
Rising global vehicle sales and strengthened consumer confidence are encouraging automakers to increase vehicle production, the report says.
China is expected to over-take Europe as the leader in vehicle output. Assembly and production there is expected to jump 17 per cent, or more than 21 million units. China is expected to represent 28 per cent of the total global output this year.
The report suggests European auto-makers will counter the Chinese by boosting production by six per cent in the first quarter of 2011, totaling an additional 200,000 vehicles. Increased output by BMW and Mercedes-Benz will likely increase the country’s GDP by 0.8 percentage points.