CAPC - News Release - May 30, 2002

Automotive Partnership Continues To Make Progress Towards Roadmap for Global Competitiveness

Toronto, Ontario -- The Canadian Automotive Partnership Council (CAPC) today reported, following its third meeting that it continues to make excellent progress in advancing its mandate of fostering a strong and attractive automotive industry for Canada.

Don Walker, President of Intier Automotive and CAPC Co-chair noted, "Several specific recommendations from the Council such as tax changes have been reflected in recent government actions. Today's announcement by Minister of Human Resources and Development Canada, Jane Stewart, of a $420,000 contribution toward the creation of the Automotive Manufacturing Sector Council is another indication that the industry's recommendations are being heard and addressed by government." Mr. Walker also commended the Ontario government for providing $90 million dollars for improved equipment and training for skilled trades at high schools.

Michael Grimaldi, President of General Motors of Canada and CAPC Co-chair added, "Our collaborative work among the CAPC partners is helping to identify priorities, develop practical responses and accelerate progress on key issues. This week's announcement of joint action by the Government of Canada and the Government of Ontario to advance solutions at the Detroit Windsor border was another critically important step in the right direction for our industry."

In just its third meeting since September 2002, the Council reviewed the progress of the working groups formed to examine key Canadian automotive industry issues. CAPC today reviewed reports of its five main working groups in the areas of fiscal/investment policy, human resources, innovation, regulatory harmonization, and trade infrastructure as well as working group reports on environmental and light weight materials. The Council is also developing a strategic vision for the automotive industry which will include looking at trade policy issues.

CAPC also today received the preliminary results of an analysis by KPMG which compared the relative attractiveness of eight different jurisdictions, six in the US and two in Canada, for automotive investment. The study also examined the impact on matters which the Council and governments continue to assess. The draft study has been referred to the Investment and Fiscal Policy Working Group for additional analysis.

"We have worked hard to improve the business climate for all sectors in this country. So it is not surprising that the automotive sector in Canada continues to be a highly competitive place to do business, " said the Minister of Industry, Allan Rock. "Our task is to focus on bringing forward sound policies that that will provide a solid foundation to build a strong and sustainable automotive industry for the future" said Rock.

"The automotive industry is a driver of the Ontario and Canadian economies and, as such, is a priority for this government," said Ontario Minister of Enterprise, Opportunity and Innovation, Jim Flaherty. "We are pleased with what this Council and this process has accomplished in the past year. All parties have worked well together and made a valuable contribution to the creation of a shared vision of the Canadian auto industry of tomorrow."

"I am delighted with what CAPC has accomplished in the past eleven months, and we are beginning to see the results, with the announcement by my colleague Jane Stewart, of a new Automotive Manufacturing Sector Council to examine human resource issues" said Minister Rock. "Canada's automotive competitiveness in North America continues to rank at the top of the list. All parties have worked well together and they make a valuable contribution to the creation of a shared vision of the Canadian auto industry of tomorrow."

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