Michigan, Ontario Automotive MOU – NAFTA without Mexico?

AutoInformed.comOntario Premier Kathleen Wynne and Michigan Governor Rick Snyder were in Traverse City, Michigan, this week to sign an Automotive MOU – Memorandum of Understanding – that it’s said will promote auto industry innovation and regional competitiveness. Ontario and Michigan are two of the leading automotive jurisdictions in North America, of course, together accounting for more than 26% of vehicle production in the region. In 2015, two-way goods trade between Ontario and Michigan totaled $74 billion.

“Ontario is already a leader in automotive parts and assembly. Increasingly, we are leading in automotive innovation as well, particularly in the fields of information technology and clean technology. But we can’t take our success for granted,” said Kathleen Wynne, Premier of Ontario at the CAR Management Briefing Seminars.

North America’s auto industry is comprised of regional clusters in the Great Lakes, southeastern U.S. and Mexico – currently a big issue in the U.S.  presidential election since Bill Clinton signed the NAFTA agreement. Ontario and Michigan already benefit from a shared and integrated supply chain, with parts and completed vehicles moving back and forth across the border. The Automotive MOU creates a working group to explore opportunities for increased collaboration

Potential Automotive MOU Focus Areas

  • Technology advancement, including connected cars, autonomous vehicles, lightweight materials and alternative fuels
  • Increased supply chain integration and technology transfer through business-to-business partnerships
  • Best practices in industry strategy, regulatory and policy approaches, and workforce skills development.

“This partnership will improve Michigan’s work on skilled trades and workforce development efforts, as well as promote our focus on autonomous vehicles and mobility technologies throughout North America,” claimed Rick Snyder, the lame duck Governor of Michigan.

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