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PETER LANGILLE, AM 800 CKLW
Tuesday, October 2nd 2018
The automotive parts makers in the Windsor area are looking at a huge uptick in opportunity.
Terms of the newly agreed to USMCA trade deal mean the requirement for vehicle content made in North America increases by 20%.
Automotive Parts Manufacturers Association of Canada President Flavio Volpe says Windsor is perfectly positioned to take maximum advantage.
He spent a lot of time in Washington over the past weeks helping work out the terms of this agreement.
He says the terms of the USMCA spell out exactly how much more of a vehicle needs to be made on this continent.
“You now have to source 75% instead of 62.5% of that content in North America. That is a 20% increase in local content”
He says the 20% increase in locally made parts will benefit companies that are already supplying to the automakers.
“That volume will show up undeniably in places like Windsor because the automakers need to do that to be USMCA compliant”
He says it will be a challenging growth, but will inevitably lead to more hiring.
“The more efficient, competitive companies are going to be the ones that get to those deals first. Those companies will have to invest in capacity and some of that capacity is human capital”
Volpe says the steel and aluminium tariffs remain a concern, but he is returning to Washington to work with Canadian negotiators to resolve that.
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