This annual economic forecast presents the long-term national outlook. The U.S. economic outlook is presented in a separate section.
Canadian Industrial Outlook: Motor Vehicle Manufacturing—Autumn 2017
Canadian Industrial Outlook: Motor Vehicle Manufacturing—Autumn 2017
Industry Economic Analysis
$945.00
U.S. Economy—Economic conditions south of the border continue to support Canadian vehicle manufacturing: fuel prices are low, U.S. labour markets are near full employment, interest rates are below historical averages, and exchange rates favour U.S. consumers. Although the boom is expected to subside after two years of record sales of light vehicles, the slowdown should occur gradually.
Demographic Change—The aging of the baby-boom population is driving a more muted profile for demand for new vehicles. Lower-than-average vehicle consumption rates among millennials and seniors will ease U.S. vehicle sales from their two-year peak, helping to bring Canada’s auto manufacturing sector back to historical norms.
Trade Uncertainty—Due to automakers’ heavy reliance on internationally integrated supply chains, the current unease in North American trade relations poses a risk to automakers’ investment and production in Canada. Potential changes to rules-of-origin requirements could take a sizable bite out of Canadian auto exports and GDP. The current outlook assumes the continuation of NAFTA.
Customers Who Downloaded This Also Liked
18 min read
13 min read
3 min read
Require an accessible version of this research?
Upon request, Signal49 Research offers accessible versions of research. Please contact us to request your accessible version.
Learn more about our accessibility policies.
Effective January 26, 2026, AERIC Inc./Signal49 Research discontinued use of ‘The Conference Board of Canada’ name, logo and branding, which had been used by AERIC Inc./Signal49 Research under license from The Conference Board, Inc. The Conference Board, Inc. and its licensees, which are not affiliated with Signal49 Research, own all right, title and interest in THE CONFERENCE BOARD name and trademarks in Canada and have the exclusive right to their use in Canada since January 26, 2026.
