Having five Canada-based auto parts makers on the Automotive News Top 100 Global Suppliers List is good for the Canadian brand and business, says the president of the association that represents them.
“Five companies on a list of 100 would be, to some, seen as punching above the weight [class] but for those of us who know these companies, it’s about right,” Automotive Parts Manufacturers’ Association President Flavio Volpe said. “The more Canadian names we see on the list, the more relevant the Canadian flag is when we’re presenting and pursuing new business. It speaks to the credibility of the jurisdiction.”
Magna International Inc., based in Aurora, Ont., ranked third for the second consecutive year and is the only Canadian company in the top five.
It did $48.33 billion (US$36.44 billion) in total global OEM automotive parts sales in 2016, up more than $5.3 billion (US$4 billion) from 2015.
Others in the top 100 include:
• Linamar Corp. of Guelph, Ont. at No. 59 with $4.6 billion (US$3.5 billion) in sales;
• Martinrea International Inc. of Vaughn, Ont. at No. 68 with $3.9 billion (US$2.95 billion) in sales;
• ABC Group Inc. of Toronto at No. 98 with $1.25 billion ($948 million) in sales; and
• Multimatic Inc. of Markham, Ont. at No. 99 with $1.24 billion (US$940 million) in sales.
This year’s list was released June 26 and tracks sales from the previous year.
Only three companies — Magna, Linamar and Martinrea — were in the top 100 in 2016 and just two — Magna and Linamar — made the list in 2015.
“It’s an indication that Canadian companies are increasingly real global players, able to move capital in pursuit of new customers in different markets,” Volpe said. “It’s also an indication of the global consolidation that is taking place in the supply sector.”
An increasing number of Canada-based supply companies can now demonstrate they can win business and service customers on continents other than North America, Volpe said.
“Increasingly, the automotive discussion for Canada is a really strong supply sector that is globally relevant,” he said.
The global growth of suppliers based in Canada, along with the highly-integrated supply chain, illustrate the need for trade agreements, Volpe said.
“With the amount of trade and globalization that’s happened in the last 20 years, making any changes [to NAFTA] would affect the prospects of a lot of those companies,” Volpe said. “We set up trade agreements so those companies could have opportunities in those other territories and invest in them.”