A weak U.S. dollar and new, cost-cutting labor contracts with the United Auto Workers have turned Canada from a low-cost alternative for Detroit's Big Three automakers into the most expensive place in the world to build cars and trucks.
And Ontario's loss could be Michigan's gain.
Canada's national health care system and favorable exchange rates have long made Canada an attractive manufacturing location for American automakers. But with the Canadian dollar, or loonie, now nearly on par with the greenback and the new contracts negotiated this fall with General Motors Corp., Ford Motor Co. and Chrysler LLC, the UAW has more than closed the cost gap with the Canadian Auto Workers.
This example shows how the different currencies and the border influence the automotive industry. So Canada is now the high cost producer of autos. How interesting.
It does seem obvious that the Canadian national health care system would be regulated under any new trade agreement.
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