Strike side effects
Canada’s manufacturing sales fell in 11 of 21 industries in October due to the U.S. auto strike between General Motors and its United Auto Workers (UAW), says Statistics Canada.
On Dec. 23, Statistics Canada reported Canadian manufacturing sales fell 0.7 percent to $57.1 billion in October as sales of transportation equipment declined, due in part to the GM strike in the United States.
Statistics Canada had reported a 0.2 percent drop to $57.4 billion for the sector in September 2019 and expected no change for October prior to the strike.
The transportation equipment sector fell 3.1 percent in October as motor vehicle assembly and motor vehicle parts sales dropped due to the interruption. Sales of fabricated metal products dropped 8.2 percent.
According to Statistics Canada, the overall economy shrank 0.1 percent in October—the first time the Canadian economy has seen a decrease since February 2019.
Tiptop Tesla
Tesla shares spiked into record territory last Friday as the EV automaker reported deliveries beyond Wall Street’s expectations.
Tesla stock shot up as much as 5.5 percent to an intraday high of US$454 on Jan. 3—well above its Dec. 26 record close of $430.94 and its previous all-time intraday high of $435.31 reached on Dec. 27.
Tesla said it delivered 112,000 vehicles during the fourth quarter; Wall Street expected the EV automaker to delivery 106,000 vehicles during the fourth quarter in order to just meet Tesla’s annual delivery goal of between 360,000 and 400,000 vehicles.
Tesla’s total of 112,000 pushes 2019 deliveries up to 367,500 vehicles—50 percent above the 2018 total and in line with Tesla’s predicted vehicle delivery range.
Martinrea’s move
Ontario-based auto parts supplier Martinrea International has signed a deal with a Mexico-based structural components business that sees the Canadian supplier acquire a unit of the company.
Under the agreement, which is said to have cost the Canadian parts supplier US$19.5 million (CAD$25.3 million), Martinrea will acquire six global plants from Mexico-based Metalsa S.A. de C.V., as well as approximately 2,000 employees.
Martinrea will acquire a large facility in Bergneustadt, Germany; a plant in San Luis Potosi, Mexico; a facility in Tuscaloosa, Alabama; two plants in China and one in South Africa.
“These locations align with our current base and will give us a broader global footprint expanding our product offerings and manufacturing capabilities,” said Pat D’Eramo, Martinrea’s president and CEO. “This acquisition will strengthen our engineering presence in Europe. We are excited to welcome a new group of creative and motivated team members into the Martinrea family to continue to build a great future together.”
Martinrea says the largest customers of business being acquired are Daimler, BMW and Volkswagen.
The assets to be acquired are expected to generate about $400 million in sales this year, according to the company.
Based in Vaughan, Ont., Martinrea posted more than $2 billion in sales last year.
