The Future of Canada's Auto Industry: The Big Three and the Japanese Challenge

Stephen J. Kees was Chief Librarian, Niagara College of Applied Arts and Technology, Welland, Ontario.

A feature of this century has been the growing dominance of the automobile industry in the affairs of the major manufacturing nations, especially in North America. However, in the past few years the domination of the large American companies has been challenged, even in their home market (which includes Canada).

As an economist particularly concerned with the automobile industry for a number of years, the author offers some alternative scenarios for the Canadian situation, and possible solutions to the problems. All the suggestions present serious difficulties and potential dislocations for us, particularly since our industry is controlled from the United States, where governments have a somewhat different perspective of the situation.

The statistics come from published sources and are presumably correct, but the conclusions to be drawn from them may be completely opposite according to whose side one is on. Mr. Perry considers that we should get out of automobile production per se and concentrate on areas of the parts industry, in which we could do very well. His case is convincingly presented and represents a view-point different from the one we hear so often from the industry spokesmen.