GM Canada Vice President Addresses Oshawa Chamber of Commerce

Posted on 31. Jul, 2015 by in GM Canada


GM Canada Vice President Addresses Oshawa Chamber of Commerce

2015-07-30

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Good morning and let me contend conclude we to Oshawa Chamber CEO Bob Malcolmson for mouth-watering me here this morning.

As Bob mentioned, it is my honour to be holding on a purpose of Chair of a Canadian Chamber of Commerce in October, so we cruise it’s wise that we make my initial remarks right here in a home Chamber in Oshawa where we have been unapproachable members for so many years.

I would like to share some perspectives on a state of Canada’s automobile zone and General Motors opinion here in Oshawa.  

This stays a many discussed subject that affects businesses, families and we would contend even a clarity of mercantile certainty in Ontario and Durham Region.

Let me start by charity 3 ubiquitous observations:

First, while a past decade has offering adult unusual hurdles for GM Canada and a whole Canadian automobile sector, we would disagree that Canada’s automobile courtesy came by those hurdles remarkably well.

Particular credit should go to a Ontario and sovereign governments. Literally, GM would not be here though them.

Second,  while some currently insist in portrayal auto’s destiny as one of “doom and gloom”, we during GM Canada see a lot to be certain and assured about, including right here in Canada and in Oshawa.

And third, a automobile zone is fast relocating to a slicing corner of a disruptive, sparkling age of technology, innovation, change and event and that is also vicious and sparkling for us in Oshawa.

I would also contend a work we’re doing during a Oshawa Engineering Centre is unequivocally vicious for Canada.

So let’s start with a discerning 10-year summation of a automobile zone in North America by focusing on automobile prolongation stats – given that has traditionally been a motorist of automobile jobs and prosperity.

Over a past 10 years, sum North American prolongation rose from 15.8 million units in 2004 to 17 million in 2014. In a center of that 10 year widen we have a good mercantile predicament of 2008 and 2009.

2008 was also a year when sales dipped though also Mexico surpassed Canada in altogether production, and it has not looked behind since.

There are many reasons for that change in automobile prolongation and they do NOT all have to do with reduce salary rates – nonetheless that is a poignant difference.

There is no doubt that there has been a change southward in automobile production, though let’s also take note of where a prolongation change came from.

Between 2004 and 2014, Mexico’s share of North American prolongation grew from 9.4% to 18.8%. That enclosed new investments from Europeans like Volkswagen, Audi and BMW as good as Japanese and Korean OEMs. The US mislaid 6.5 points of North American share from 73.6 to 67.1 and arguably Canada hold some-more solid losing 2.8 points of share to 14.1 %. This is indeed conspicuous when we cruise that from 2007 to 2014 a Canadian dollar rose to abnormally high levels that done Canada one of a many costly places anywhere to make a vehicle. 

So, since did Canada satisfactory improved altogether in holding adult a share of production?

Much of a resilience of Canadian automobile prolongation had to do with a caring of a Canadian and Ontario Governments in 2009 in ancillary GM and Chrysler’s restructuring and in lapse we sealed adult to keep a clever prolongation bottom in Canada.

GM has over all of a promises it done in 2009 and afterwards some – in fact we design to surpass a Canadian prolongation promises that run to a finish of 2016 by tighten to 1 million vehicles.

This subsequent draft shows how that prolongation change played out within Canada. Over a past several years, Canadian formed prolongation has continued to be led by GM Canada, Fiat Chrysler and Toyota. 

Honda has been a step reduce on prolongation volumes and Ford is now a smallest volume writer of a 5 in Canada.

So that is where we mount currently and we cruise it is value observant that we owe an implausible debt of thankfulness to a sovereign and Ontario governments for assisting to get us here.

In serve to their caring in 2009, we have seen a array of unequivocally vicious certain routine wins.

In 2002 a Canadian Auto zone set out a assimilated Canadian Auto Strategy by a Canadian Automotive Partnership Council. That plan called for a expansion of rival automobile inducement supports (that brought us a Beacon plan and a General Motors Automotive Centre of Excellence or ACE during Durham College, finish with a climactic breeze tunnel).

Our Federal supervision also addressed a harmonization of pivotal Canadian and US reserve and fuel economy law that was a outrageous stress for a business in Canada.

We’ve also achieved vicious logistics improvements during a US Canadian border, a Gordie Howe Bridge during Detroit – Windsor.

Ontario’s Jobs and Prosperity Fund continues to make investments opposite a sector.

And in a many new sovereign budget, new supports for Canadian automobile suppliers by a Automotive Supplier Innovation Program helps safeguard suppliers continue to lead in innovation.

These are outrageous wins for Canada’s automobile sector, they assistance keep us rival and they should be acknowledged. 

The automobile sector, including OEMs, suppliers, unions and academics assimilated in job for these changes and frankly, a governments delivered.

If we had to offer adult a magnitude label on how Canada’s automobile zone faced adult opposite a mercantile predicament and how supervision upheld a sector, I’d have to contend flattering well! 

But, headlines continue to expel unconstrained doubt on a destiny horizons for Canada’s automobile sector.

Of course, here in Oshawa, we know that one of a 6 vehicles we furnish during Oshawa Assembly, a stream indication Chevrolet Camaro, will come to a finish of prolongation during a finish of November. 

Our village in Oshawa, though no reduction a communities of Brampton (Fiat Chrysler), Woodstock (Toyota), Windsor (Ford) sojourn understandably shaken about what destiny new product mandates might be won to keep those plants, their workers and their suppliers operative into a future.

I can’t pronounce for a other automobile OEM, though we have to contend that during GM Canada we feel a healthy volume of certainty about a augury for a destiny in Canada and in Oshawa.

Now, let me underline a word we usually used to news a routine of new product mandates for open plants – they need to be won. Winning usually comes after a good understanding of analysis, investigate and collectively putting a unequivocally best feet forward.

As a boss Steve Carlisle has set out in countless meetings and a array of Community Updates given his appointment final December, we trust we have extensive strengths in Canada, not a slightest a routine victories we usually mentioned by CAPC.

Other than ‎serving a customers, winning new mandates and offered some-more vehicles are a tip dual priorities during GM Canada. We are operative unequivocally closely with a pivotal partners to put brazen a many certain box for a future.

We are infrequently asked, what are a pivotal criteria that are complicated to establish new open investments? This is a formidable routine though we can oversimplify it into 4 areas of study:

  1. The plant itself – including a cost efficacy of a infrastructure, appetite costs, logistics, coherence and a lane record for peculiarity and productivity;   
  2. Our internal workforce – not usually work costs though also a coherence and structure of a agreements
  3. Our suppliers – they need to be cost competitive, innovative, high peculiarity and flexible
  4. Government routine – not usually incentives or advantages like a health caring system, though also a review on probable destiny restrictions or risks from new policies that impact us.

So since do we contend we are feeling positive? Part of that is simply a proceed and opinion during GM Canada. We have no time for doom and gloom. We cite a Can Do approach. But there are some specific positives we can indicate to as well.

First, during GM we like to build where we sell. And we generally like to build in places where we are flourishing sales. And that is what in now function in Canada.

In a sales news for a month of June:

Chevrolet sum sales increasing by 13 per cent
Buick sum sales increasing by 29 per cent
GMC sum sales increasing by 18 per cent
Cadillac sum sales increasing by 13 per cent
GM is a fastest flourishing pickup sales association in Canada

The other reality, when we trade roughly all your prolongation to a US, is that a profitable to be means to sidestep banking impacts opposite a cost of imports, like a vehicles we sell to Canadians in flourishing numbers.

There are also many outmost factors we simply don’t control. Economic expansion is always a certain for automobile sales and honestly so too are low gasoline prices. In new years, a high Canadian dollar has been a clever snag for Canadian manufacturers, though this has now swung a other approach – maybe over swung.

We don’t make investment decisions formed on mark prices for oil, gasoline or a loonie. We demeanour during an estimated unfamiliar sell over a longer setting when we make investment decisions. That’s said, sell and other mercantile factors demeanour some-more certain over a entrance years than they have been.
And afterwards what about those investment factors for Oshawa Assembly?

Our Oshawa Assembly trickery in fact has a lot going for it – a new paint plant and state of a art stretchable production system, a tighten vicinity retailer park and a stellar lane record for peculiarity and capability to name though a few advantages.

Our Unifor partnership is also strong. We have worked by a Camaro changes in a certain and prolific manner. As a result, we are assured we will conduct this change though a need for layoffs.

We are means to do that given we have a high array of retirement authorised hourly workers that have inaugurated to take negotiated retirement incentives. Clearly, a agreement negotiations in 2016 will be unequivocally vicious for a destiny as well, though transparent communications and trust give us a lot of confidence.

Our suppliers are another pivotal partial of a equation. We have been operative unequivocally closely with superb companies like Magna, Martinrea and with a APMA to magnitude a cost competitiveness, peculiarity and creation of Canadian formed suppliers. Again, we trust this can be is a net strength for Oshawa – upheld again by a many new sovereign budget.

Our governments have played a pivotal certain purpose good over a restructuring of 2009 to make Canada a some-more appealing office for automobile investment.

New issues will always emerge – though either those are initiatives like Cap Trade, electricity prices, Ontario grant policies, new trade agreements, we can say, as a executive obliged for open routine during GM, we have never felt some-more assured in a mutual concentration on ensuring these or other policies do not mistreat investment opportunities in Oshawa.

In fact, we trust some will net out as positives for us that will assistance us rise rival advantages for a future

Now we do not meant to sound Pollyannaish or downplay a hurdles we face as we build a investment box for a destiny in Oshawa Assembly.

I am also conscious, wearing my Chamber of Commerce shawl that mercantile and routine issues face several sectors of a economy in opposite ways.

But we do trust that factors are looking many some-more certain for GM and a zone in Canada. 

In loyal Team Canada fashion; Steve Carlise and General Motors Canada along with all of a partners are committed to winning.

If it’s loyal that Canada’s automobile zone has hold a possess over a formidable decade, and if it’s loyal that there is in fact a box for a some-more certain and assured outlook, afterwards are we unequivocally prepared for that future?

The automobile zone is fast relocating to a slicing corner of a disruptive, sparkling age of technology, innovation, change.

Put simply, we trust a automobile is a subsequent large height for creation in mobile communications and “the internet of everything” – we call it “the connected car”.

What smartphones and tablets did to bond us in a past decade, a automobile will do for us in a subsequent – and many more. Automotive will be a subsequent pivotal step in a Internet of things – appurtenance to appurtenance connection, automobile to vehicle, highway to automobile and unequivocally connected drivers.

At GM, we design that within a subsequent 5 years, 75% of a business will be wirelessly connected from their vehicle.

The attainment of a “connected car” is opening adult unequivocally new and opposite ways of looking during a knowledge and expectations of a automobile customers. It is also changing how we demeanour during a business and how we can broach for a customers.

One thing we know everybody here understands is that a gait of creation is changing.

It took a universe 74 years for a write to strech 50 million users.

The internet took 2 years to get there – amicable media 1 year. So what does this meant for a world?

I cruise it means that connected, programmed pushing is apropos a existence a lot faster than many people think.

Let me share usually a few examples with we how GM is responding to this change.

Many of we might be informed with a Onstar system.  For roughly 20 years we have been safeguarding and ancillary a business with a live voice during a pull of a blue symbol – how mostly does that occur during your mobile phone company?

Today, we are also providing a business with 4G LTE connectivity and wifi opposite probably all of a new vehicles. 

That means a vehicles are now mobile prohibited spots means to support adult to 7 inclination during a time for passengers streaming video, gripping connected on Instagram or listening to your Spotify song lists. 

The connected automobile is also about creation life simple.

On a road, business wish even improved formation between phones and their vehicles.

And we need to do that in a protected manner. 

So we recently assimilated together with Apple and Google to announce that Chevrolet will offer Android/Auto and Apple CarPlay harmony in some-more models around a creation than any other automotive brand.

This is a smart, elementary formation that will now move a customers’ digital life into a automobile – their pivotal information on their phones while driving. 

Another instance is a RemoteLink.

When this OnStar app initial launched, it was a industry’s initial smartphone focus to give owners a remote tie to their vehicles and control of automobile functions.

Today we have 1.6 million RemoteLink users globally with roughly 106,000 purebred users in Canada

Teen driver is an on-board app instituted and operated by a primogenitor and it marks stretch driven, limit speed travelled, over speed warnings issued, anti-lock stop events and more.

When activated, Teen Driver automatically mutes a radio until chair belts are fastened.

If we have a teen you’ll conclude since that works.

What does all this disruption, change, and creation meant for Canada and for Oshawa?

The brief answer is “opportunity”

Canada has been an automobile producing office for some-more than 100 years when Colonel Sam McLaughlin motionless that usually a Buick engine would do for a McLaughlin Carriage.

We have an innovative intent retailer bottom and we have well-developed talent being constructed in a educational institutions. 

On Apr 27 we were intensely vehement to announce that we have been awarded a new charge for a GM Canada Engineering Centre in Oshawa and we are now in a routine of employing 100 of a best and brightest program engineers we can find. 

We cruise there is serve expansion event in a Engineering Centre and with a university and college partners in a future. New supply bondage and ecosystems will emerge.

One day shortly Oshawa could be an vicious new focus indicate in a Ontario mobile tech mezzanine using between Waterloo and Ottawa.

The connected automobile is a good event area for Canada to residence a long-standing plea of commercializing RD.

As a connected automobile leader, dignitary and integrator, GM Canada skeleton to assistance seize this opportunity.
So let me sum adult with these points:

Canada’s automobile zone has hold a possess over a formidable decade

Factors are looking some-more certain for GM and a operations in Oshawa. All of a partners are committed to winning. We feel certain and optimistic.

The Connected Car is a subsequent large platforms for creation in a automobile zone and a function in Oshawa.

Canada has a singular set of knowledge and healthy advantages in this space.

We are hiring, expanding, partnering – we wish a best and a brightest for this subsequent theatre in automobile innovation.

Thank we for your courtesy and we demeanour brazen to operative with all a partners as we seize a day and movement to where a puck is going.

Thank you.

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