The Vancouver area’s booming auto industry has been on a tear this year, as the global oil price crashed and Canada’s benchmark energy index surged.
Now, many of the region’s biggest carmakers are on the brink of bankruptcy and many of its biggest car companies are facing steep layoffs.
Here’s what to know about auto stocks.
Auto makers and carmakers will probably keep their jobs until 2019 1.
Canadian auto makers will likely keep their factories open as the oil price crashes, says Doug Porter, an analyst with the Canadian Automotive Industry Association.
Porter says there’s a lot of uncertainty about whether or not Canada’s auto industry will recover in the next few years.
“We don’t know what the outlook is for the auto industry,” Porter says.
“It could be that the oil crash is the tipping point for some auto makers.
We don’t really know.”
But if the oil bust doesn’t blow up the auto market, then Porter says the auto sector could be in for a rough time.
“There’s still a lot to be done in the auto business,” Porter adds.
Porter thinks the auto stocks that are in trouble could benefit from a rebound in the oil market.
He says the Canadian auto industry could see an increase in sales in 2019.
The auto industry’s outlook has been improved, but it’s not a given yet.
The Canadian Auto Association says the industry is still recovering from the oil shock, and it’s important to look at the bigger picture.
It’s important that auto companies take action to prepare for a downturn, says John Hirsch, a senior analyst with AutoPacific in Vancouver.
Hirsch says if auto companies don’t take measures to address their oil shocks, they’ll be left behind.
“I think there’s an opportunity to see some positive momentum in the industry, and that’s one of the reasons we’re seeing a recovery in the sector,” Hirsch tells CBC News.
Car companies are still struggling to find workers, but they’re not losing much sleep about it.
Hiring in the automobile industry has dropped off in recent years as the economy has stagnated.
But Porter says car companies aren’t losing too much sleep.
“They’re going to continue to hire people,” he says.
Hich says that’s because car companies can’t rely on new hires to fill their needs.
He points out that a shortage of workers can mean a decline in sales and jobs.
“The industry will be able to survive if the demand remains high,” he explains.
Auto companies are already struggling with the aftermath of the oil oil price crash.
Porter explains that there’s been a decline of car sales, which is why many of these companies are struggling to recruit workers.
“If we’re going down, then we need to be able in some way to attract new employees,” Porter explains.
He believes there’s plenty of opportunity to attract workers with a higher income, especially in higher-paying sectors like technology, engineering and healthcare.
“Those are areas that are struggling right now and there are going to be more jobs created in those sectors,” Porter concludes.
Canada is home to some of the world’s best auto manufacturing facilities.
Canada has been a hub for auto manufacturing for decades.
But a recession in the United States has been the biggest factor driving Canada’s automotive industry to the brink.
Porter notes that the auto companies are scrambling to find skilled workers.
He argues that the industry’s manufacturing sector has been built on a lot more than just the oil crisis.
He explains that a downturn in the U.S. has created a “global environment that’s ripe for auto manufacturers to move” and take advantage of the booming auto market.
Porter adds that there are a lot less jobs in Canada than in the US. 6.
The car industry is now in a more precarious position.
Hohl says the recession in China is now impacting the auto industries here in Canada.
China’s auto market has grown by more than 50 per cent since 2010, and now many companies have been looking to Canada as a potential market to grow their businesses.
“That is where the Canadian car industry has really struggled,” he notes.
“So we’re very concerned that the automotive industry in Canada is going to suffer a lot in terms of the impact of the recession on the Canadian automotive industry.”
Canadian carmakers and their employees are on a fast-track to recovery.
Porter tells CBC’s This Week that carmakers in Canada are making steady progress towards the recovery, but not everyone is so fortunate.
He adds that some workers in Canada’s oil-dependent auto sector have been laid off in the last few months.
Porter warns that there will be more layoffs in the coming months.
“What’s going to happen is that we’re not going to see the big companies that are really important for the Canadian economy, such as the big auto companies, getting a lot better,” Porter warns. “And