Linamar CEO: Border Tax Could Hurt The Consumer

The transcript discusses the potential impact of anti-trade rhetoric on the North American auto sector, focusing on the implications of a border tax. Linamar CEO Linda Hasenfratz highlights the interconnectedness of the automotive supply chain across North America and the potential negative consequences of increased costs on consumers and vehicle volumes. The discussion also covers OEM responses to trade rhetoric, emphasizing the need for fact-based decision-making. Additionally, the transcript addresses the importance of maintaining competitive tax rates and managing energy costs in Canada to ensure the competitiveness of Canadian manufacturing.

What is the main concern regarding the implementation of a border tax in the North American automotive industry?

• It will enhance free trade.

• It will increase vehicle volumes.

• It will reduce consumer costs.

• It will disrupt the interconnected supply chain.

Why are automotive companies hesitant to make strategic decisions based on the new administration's rhetoric?

• They have no investments in Mexico or Canada.

• There is a lack of clarity on future policies.

• They have already moved all production to the US.

• They are not interested in global markets.

How many times does the average auto part cross the North American border before being assembled into a vehicle?

• Seven times

• Three times

• Five times

• Ten times

What percentage of global vehicle volumes is located outside North America?

• 70%

• 50%

• 80%

• 20%

What is a potential consequence of adding costs and inefficiencies to the automotive industry?

• Lower production costs

• Higher consumer demand

• Reduced access to technology

• Increased global competitiveness

What is one of the challenges faced by Canadian plants due to potential US tax reductions?

• Increased energy costs

• Higher labor costs

• Reduced productivity

• Lack of skilled workers

What is the suggested approach to managing energy costs while maintaining sustainability?

• Ignore government intervention

• Balance reasonable costs with sustainable practices

• Focus solely on renewable energy

• Prioritize low costs over sustainability