TORONTO – A new report says Canadian automakers are expected to reap their highest profits in years in 2015, helped by the weak loonie and the insatiable appetites among North Americans for vehicles.
The Conference Board of Canada report anticipates that production of vehicles and parts by Canadian automakers will grow by 2.5 per cent this year.
That’s despite a slow start to the year as Ford’s plant in Oakville, Ont., and Fiat Chrysler’s plant in Windsor, Ont., were retooled to prepare for the production of new models.
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Auto manufacturers’ profits are expected to rise to $2.36 billion this year.
The report says low gas prices, loose credit conditions and strong underlying economic conditions are fuelling demand for vehicles.
Conference Board of Canada economist Fares Bounajm says 80 per cent of vehicles made in Canada are exported to the U.S., which makes the lower loonie a “boon” to the industry’s bottom line.
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