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Background on the CVMA and auto manufacturing industry globally ... Most auto manufacturers have production facilities in multiple jurisdictions ...
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Slide 1:North American Auto Manufacturing and the Canada – US Border
Slide 2:Presentation Overview Background on the CVMA and auto manufacturing industry globally
The competitive challenge of an integrated industry – why border efficiencies matter in North American auto manufacturing
Progress to date in streamlining border operations
Border realities and major challenges that remain
Slide 3:CVMA Background CVMA Members:
Chrysler Canada Inc.
Ford Motor Company of Canada, Limited
General Motors of Canada Limited
Navistar Canada Inc. (International Truck)
Key CVMA Member Canadian Statistics:
8 vehicle assembly plants and 5 major components assembly plants
50,000 Canadian employees in head/regional offices, engineering and R&D, and manufacturing
65% of Canadian vehicle production
46% of Canadian sales
Slide 4:Global Auto Industry
Slide 5:Global Auto Industry
Slide 6:Auto Manufacturers and the Border Most major auto producing regions are self-contained within single jurisdictions with no internal borders
Japan
EU
South Korea
North America is different – auto production is integrated across jurisdictions
Integrated Canada/US industry results in greater focus on transportation network and border issues
$93 B in two way trade expected in 2010 – 19% of total two way trade
Slide 8:Border Efficiency Matters
Slide 9:Border Efficiency Matters
Slide 10:International Comparison of Border Compliance
Slide 11:Vision for Border Efficiencies
Slide 12:Goals and Success to Date Auto manufacturers have been a driving force behind efforts for new programs and a rethinking of transportation and border networks
Canada/US partnerships, have been critical to improving cooperation and setting a path towards improved efficiencies
Documented through Smart Border Declaration and Action Plan
Governments agreed to facilitate trade through low-risk, pre-approval programs
Separates and streams traffic into high/low risk
Processing designed to push data and information collection and reporting away from the border
Free And Secure Trade (FAST)
NEXUS
Governments also mandated that all trade data must be reported in advance and electronically for easier at the border processing
Slide 13:Realities – Thickening of the Border Border operations have not been streamlined to the extent hoped
Other Government Departments
Estimated 45+ government departments between Canada and the US have importation requirements
Over the past several years there has been an increased demand for more import documentation at the border
Data requests are not aligned across government and can vary by department
More data at the border results in fewer good being eligible under FAST
Government departments often do not recognize low-risk programs that are rooted in customs programs and create unique and often duplicative programs
CBSA PIP and Transport Canada Air Cargo Security
Difficulty in implementing electronic reporting and processing
Often “low-risk” loads face increased inspection rates
Decreased traffic volumes, but increased “dwell” times
Contingency plans developed, but unsure of effectiveness
Slide 14:Infrastructure Realities Infrastructure that is built for different realities in a different century
Traffic volumes increasing with economic recovery in 2010
Trucks up 26% at Ambassador & 19% at Blue Water
Governments often focused on China and other foreign trade partners
Canada/US auto trade nearly doubles Canada’s total trade with China
Priority on Windsor/Detroit Gateway
Handles majority of automotive trade
401 not connected to current crossings
No dedicated lanes for low-risk programs from Highway to Interstate
Current bridge limited by only 4 lanes
Slide 15:Summary and Key Considerations Auto manufacturing remains of major economic importance and is highly integrated within North America
Integration and competitive global forces require streamlined and efficient border operations
27,000 customs transactions for domestic manufacturer vs. 1 for a foreign manufacturer
Has competitive implications – adds costs to manufacturing processes and consumer prices
Efforts are being made towards a more efficient border
Industry is partnering with government, but more needs to be done
There must be a coordinated government wide strategy and commitment to streamline border operations
Must be significant commitment and investment in new trade infrastructure