'Think long term': Former Toyota boss says Canada can't lose its car plants

The former chair of Toyota Canada, Ray Tanguay, told a London business audience Wednesday that automotive manufacturing is critical to Canada's future economic success.

Tanguay, who now serves as an automotive advisor to the federal and Ontario governments, said Canada and the US have to learn to compete with Mexico and its lower wages.

He gave the keynote address at a conference called Manufacturing Matters at the London Convention Centre.

Tanguay said the continent needs low-cost manufacturing to be competitive internationally.

"If we don't compete in North America, then cars are going to come from other regions of the world, and then we have no contribution," said Tanguay.

He said the auto industry has a big impact on Canada's economy, especially in Ontario. But he notes there is a high percentage of U-S content in every vehicle produced in Canada.

Tanguay says the current NAFTA negotiations are important because they are addressing content issues. He thinks Foreign Affairs Minister Chrystia Freeland is doing a "great job" of staying calm and focused on Canada's long-term interests.

"My recommendation for the federal government is think long term. Don't compromise on the short term because it's going to hurt us in the long term."

'Cami important to GM's future'

When asked by CBCabout the current strike by CAMI workers in Ingersoll, Tanguay said, like other auto analysts, he was surprised that a strike came about.

• 'We remain far apart': Union updates talks to end CAMI strike

"Yes, I was surprised but I don't know what's going on in the backroom(s)" of General Motors and Unifor.

As for how long the strike might last, Tanguay said he thinks both GM and Unifor understand the benefits of reaching a long-term settlement.

"Equinox is a very important product for GM and their fleet, and even though they have some options to get (the) Equinox from other factories Equinox (at) Cami is the core."

Tanguay says the importance of the auto sector to modern economies has been graphically illustrated in Australia. Toyota produced its last car in the country on Tuesday, ending 54 years of production there.

"That was a $26 billion contribution to their economy that they have just lost. There were 200,000 (auto) jobs in Australia. So it's very important to understand the business requirements, and also to respect the people that work in those facilities," said Tanguay.

Asked if Toyota Canada could be on verge of unionization, he said it's Toyota's responsibility to take care of their employees.

He said the well-being of workers was atop priority when he was president of the company. And, he added, "if we can't take care of employees, we should be fired."