Canada appoints ex-Toyota chief Ray Tanguay to drive new auto investment push
Ray Tanguay, former Toyota Canada chairman, will lead government efforts to attract and retain automotive manufacturing as the sector faces global competition and shifting investment.
Ray Tanguay, who retired earlier in 2015 as chairman of Toyota’s Canadian operations, has been appointed to head a new automotive investment committee for Canada. The announcement was made by federal Industry Minister James Moore and Ontario’s Minister for Economic Development Brad Duguid. Tanguay’s appointment is intended to help both federal and provincial governments attract new manufacturing investment and retain existing auto jobs throughout the country.
Ray Tanguay Named Canada’s New Auto Industry Leader
Mandate of the New Committee
The new committee, led by Tanguay, will advise governments on financial incentives and other measures designed to encourage global carmakers to either expand or maintain their presence in Canada. This includes evaluating tax breaks, direct financial support, and other forms of assistance as part of efforts to make Canada a more appealing location for automotive investment. The committee’s role is particularly significant as the sector faces increasing competition from other countries, especially the United States and Mexico, where production costs are often lower.
Background and Industry Context
Canada was once the world’s fourth largest car producer, but in recent years has slipped in the global rankings. This decline is attributed to a combination of factors, including higher labour costs, a strong Canadian dollar, and a reduction in government willingness to offer financial support to carmakers. As a result, some manufacturers have shifted production to countries with lower costs, leading to concerns over job losses and the long-term health of the Canadian auto sector.
- Higher labour costs
- Strong Canadian dollar
- Reduced government incentives
- Competition from the United States and Mexico
Tanguay’s experience is seen as a significant asset. His previous role as chairman of the Canadian Automotive Partnership Council, a group focused on boosting domestic investment and output, has given him insight into what global manufacturers look for when deciding where to invest. Toyota, where Tanguay spent much of his career, operates major assembly plants in Ontario and has been a key player in the Canadian auto industry.
Government Support and Incentives
Both the federal and Ontario governments have indicated they are prepared to offer new incentives, such as tax breaks and direct support, to attract automotive investment. Since the financial crisis, around $10 billion has already been committed to support companies including General Motors and Chrysler. The new committee is expected to play a central role in shaping future support packages and ensuring that Canada remains competitive with its North American neighbours.
| Year/Period | Amount Committed | Major Recipients |
|---|---|---|
| Since 2008 | $10 billion | GM, Chrysler, other manufacturers |
Tanguay’s Role and Future Challenges
In his new position, Tanguay will be more directly involved in identifying opportunities when automakers are considering expanding, downsizing, or seeking new locations for manufacturing plants in Canada. The task ahead will involve addressing ongoing challenges such as labour costs, currency fluctuations, and the need for competitive incentive packages. The Canadian auto industry remains a vital part of the national economy, supporting thousands of jobs and contributing significantly to exports. The government’s decision to appoint an experienced industry figure like Tanguay reflects the importance placed on revitalising the sector and ensuring its long-term sustainability.
