For many decades, the automotive industry has played an important role in the Canadian economy. A large part of the Canadian jobs depend on the auto industry, both directly and indirectly. But by 2005, Canada faced serious threats globalization. Were polled stating that in the future the number of automotive jobs in Canada would hang the international competitiveness of Canadian plants. To further increase the wage would increase Canadian production costs as much about the values ​​in M. .. Read more »

For many decades, the automotive industry has played an important role in the Canadian economy. A large part of the Canadian jobs depend on the auto industry, both directly and indirectly. But by 2005, Canada faced serious threats globalization. Were polled stating that in the future the number of automotive jobs in Canada would hang the international competitiveness of Canadian plants. To continue to raise wages Canadian production costs would increase as far above the level in Mexico, China and other emerging nations, that the fitters would shift production to low-cost countries. In the meantime, the Big Three have been losing market share to their non-union competitors, especially Toyota and Honda.
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from
David W. Conklin,
Danielle Cadieux
Source: Ivey Publishing
12 pages.
Release Date: 13 January 2006. Prod #: 906M08-PDF-ENG
Globalization threatens Canada’s Auto Industry: Implications for the Economy and Society HBR case solution

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