(Windsor Star – Dave Hall)
Cost-saving measures undertaken over the past 18 months and a gradual recovery in the U.S. economy will allow Canada’s automotive parts industry to return to profitability next year, according to a report released Tuesday by the Conference Board of Canada.
After losing $674 million in 2009, largely due to a worldwide recession and virtual collapse of the domestic auto industry, the board forecasts the parts sector will turn a profit of $378 million in 2011 with gradual increases over the next three years until profits hit $894 million by 2014. The industry is expected to lose another $41 million this year before the recovery takes hold.
According to the report, U.S. vehicle demand is gradually recovering and cost-cutting measures implemented during the recession are improving the bottom line. Read more here.
Related: Canada’s auto parts industry won’t return to profitability until 2011: study.
