2012 will mark the third consecutive year of profitability for Canada’s car manufacturing industry, with the sector posting its best result since 2002.
According to The Conference Board of Canada, an industry collective, the country’s motor vehicle industry will post around $1.3 billion in pre-tax profits this year.
Conference Board associate director Michael Burt said in a statement the growth was outperforming the manufacturing industry in the United States.
“While Canadian sales are set to surpass their pre-recession level this year, sales in the US are not expected to return to 2007 volumes until 2014,” he said.
“This increasing US demand is expected to lead to a prolonged recovery in Canadian auto exports.”
Through the first eight months of 2012 Canadian automotive production rose around 20 per cent compared with the same period last year, Manufacturing Automation reports.
The country’s strong industry sectors are driving the resurgence, with truck sales outnumbering car sales, particularly in regions busy with mining and construction development.
United States sales have also posted double-digit sales growth for three years in a row as the region slowly recovers from the global financial crisis.
But despite the strong growth, production rates are set to level out over the next five years, according to Manufacturing Automation.
Once the demand that built up during the GFC is accounted for sales are tipped to decline, and General Motors already has plans to close a Canadian plant in Oshawa by 2014.