Through pm laurier which was abolished in 1846 of

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through PM Laurier which was abolished in 1846 of reform of British economy Given Canada an advantage : membership in vast international network of colonies and dominions Under British preference system Canada could export to nations that were part of British empire like India, Australia with favorable tariff treatment over US manufacturers Imperial preference offered a special advantage to the Canadian auto industry b/c U.S companies used their Canadian units to export cheaper products to imperial nations around the world Export sales allowed for a smoother production and employment schedule for Canadian plants B/C of Imperial Preference Ford Motor given Ford Canada exclusive right to manufacture and sell ford products throughout the empire except UK and sat up local subsidiaries at colonies and dominion in responding demand(managed exclusively by Canadians and operated free of influence from Detroit) Reciprocal Revised In 1854 Canada had a limited free trade agreement with U.S referred to as reciprocity 1911 Laurier attempted to restore the reciprocity with US, however, the Canadian industries didn’t support it, Liberal party and free trade notion was not adopted The sale of the McLaughlin motor car company to general motors With Ford’s competition McLaughlin disposed the carriage business and soon shifted to production of motor vehicles exclusively With Concern that the license with Buick could not be renewed , Sam McLaughlin and his father agreed to sell the company to general motors for $5M and McLaughlin remained in charge as president of the new company the new company is named General Motors of Canada The Great War, Recession and recovery Main impact on great war was full employment and people with high earnings , more people could afford to buy a car ( war caused higher demand, increase production ) During post war recession, no independent Canadian automobile company lasted beyond the 1920’s, all production came from subsidiaries of parents based in the U.S
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Canadian automobile industry became a growing, prosperous (established) and maturing industry-Ford and GM established dominated the market as independent automakers disappeared. Third company emerged and founded by Walter Chrysler who successfully turned around(Saved) the Maxwell Motors and renamed in Chrysler Corporation Big 3 automobile (GM, Ford, Chrysler) Canada became the second-largest producer of vehicles in the world. The Robb Budget of 1926 Budget presented by the minister of finance, James Robb, a tariff adjustment was proposed as well as a limited abolition (stop) of the excise tax. Proposed downward readjusted of automobile, motor truck and motor cycle duties The most significant part of the proposal was introduction of Canadian Content Scheme (Plan) which intended to provide protection for and encouragement of expansion of Canadian parts-making companies.(allows a 25% drawback(rebate) on duties paid if 50% of the value of vehicle was produced in the British Empire)
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