I am actually trying to get more information together about when, how
and if can Peugeot bring their cars to or make them in North America. I
will put the thing on the web shortly, may be we would be able to
generate some useful ideas?
Although Canadian Chrysler, GM and Ford workers are unionized, if PSA
will establish an assembly/production facility, it does not have to be
in Ontario. It can build such a facility in Quebec and use non-unionized
workforce. Quebec has by far lower labor costs than do most US states.
There are also hidden savings: much lower cost of the health insurance
and workman's compensation insurance (less fake injuries and law
suites). Ford, GM and Chrysler make cars in expensive Ontario to import
them into the United States. Quebec also has the North America's LOWEST
(and perhaps' the world's lowest) industrial energy costs, an very
important factor. Quebec also has the lowest distribution and shipping
(including transatlantic shipping through the port of Montreal) costs in
North America, to the degree that I know many people (companies) who
ship stuff to and from Europe through Montreal from and to the United
States.
Canadian taxes are not higher for manufacturing companies (there are
somewhat higher for individuals) and there are many different incentives
to attract manufacturing. Business climate is usually also much more
dynamic. Then there are huge marketing advantages in starting from
Canada (US distribution facility can remain whereever it was/is now but
I think Peugeot should pretty much scrap its old distribution network),
especially from Quebec. In turn for promised development and export
sales, Peugeot can get a guarantee for success (to long to write how and
why, I'll put it on my page). Canada also has some excellent, very
successful industrial companies, at least one of them may become the
manufacturing and marketing partner for Peugeot.
Because of the NAFTA (and the separate auto trade agreements between the
Canada and the US), the cars can be exported from Canada duty free to
the US if I believe at least 70% of the automotive content is North
American (either US or Canadian).
Eugene Soukharnikov
Providence, RI, USA