Canada is currently the 9th largest auto producer in the world, down from 7th a few years ago. Brazil and Spain recently surpassed Canadian production for the first time ever. Canada's highest ranking ever was 2nd largest producer in the world between 1918 and 1923. The Canadian auto industry traces its roots to the very beginning of the automobile. The first large-scale production of automobiles in Canada took place in Walkerville, near Windsor, Ontario in 1904. In the first year of operations, Gordon McGregor and Wallace Campbell, along with a handful of workmen produced 117 Model "C" Ford vehicles at the Walkerville Wagon Works factory.
Through marquees such as Brooks Steam, Redpath, Tudhope, McKay, Galt Gas-Electric, Gray-Dort, Brockville Atlas, C.C.M., and McLaughlin, Canada had many domestic auto brands. In 1918 McLaughlin was bought by an American firm, General Motors, and was re-branded as General Motors of Canada.
Driven by the demands of World War I, Canada's automotive industry had grown, by 1923, into the second-largest in the world, although it was still comprised of relatively inefficient plants producing many models behind a high tariff wall. High consumer prices and production inefficiencies characterized the Canadian auto industry prior to the signing of the 1965 Automotive Products Trade Agreement with the United States.
The 1964 Automotive Products Trade Agreement or “Auto Pact” represents the single most important factor in making the Canadian automotive industry what it is today: a strong, successful industry that has a significant positive impact on the Canadian economy. Key features of the Auto Pact were the 1:1 production to sales ratio and Canadian Value Added requirements.
Today, the Canadian auto industry is closely linked to that of the U.S., due to the Automotive Products Trade Agreement and later the North American Free Trade Agreement (NAFTA). There are five firms manufacturing automobiles in Canada, all in the province of Ontario: General Motors of Canada, Honda Canada, Chrysler Canada, Toyota Canada, and Ford of Canada. True Canadian domestics have long since gone under or been absorbed into the US "Big 3". The auto industry is Canada's biggest sector, and the province of Ontario surpassed Michigan in 2006 to become the largest auto-producing jurisdiction on the American continent. In addition to production facilities, 3,500 car dealers employ 140,000 individuals.
Magna International is Canada's biggest domestic firm in the sector, and is the world's third-largest auto parts firm, producing entire vehicles at its Magna Steyr plant in Austria.
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