One auto industry analyst believes the Canadian auto industry is under "serious threat."
President of DesRosiers Automotive Consultants, Dennis Desrosier, made the comment as contract talks begin today between Unifor and the Detroit Three automakers.
Desrosier told AM800's The Morning Drive that every single plant is threatened in some way but he doesn't think any are going to close immediately.
"People aren't buying vehicles, they aren't buying cars. There's a lot of competition from the U.S. South and Mexico from a production point of view, it's not good," he says. "It does not mean the industry is going to go away but it is slowly willowing out to be much smaller."
Desroiser believes Unifor needs to accomplish a few things in these talks.
"Probably the toughest negotiations you could imagine. Make sure the workers are treated fairly, they deserve that. If there is further downsizing that it's done as humanely as possible," he says.
Desrosier points out that there are five manufacturers in Canada including Fiat Chrysler, Ford and General Motors but expects a smaller foot print moving forward.
"I think it will still be very, very difficult for any of the five to fully pull out and leave Canada," he says. "Can you imagine the headlines? FCA leaves Windsor, FCA abandons Canada. Ford abandons Oakville."
The union will receive proposals today from Fiat Chrysler Automobiles, Ford and General Motors with formal contract talks set to begin around Labour Day and target company picked by September 7.
The existing agreements expire on September 21.
Unifor represents about 20,000 Canadian workers at the three automakers.