Auto workers at the General Motors Canada assembly line in Oshawa, Ont.NORM BETTS
A new report from Scotia Economics says auto sales around the world are continuing their strong recovery, but says Canada's exports aren't doing as well.
The report says global auto sales in February surged 26 per cent compared to year-ago levels, marking the fifth consecutive month of double-digit gains.
Senior economist Carlos Gomes says North American auto production will ramp up to 11.5 million units in the second quarter, half a million units higher than production levels in the past six months.
But Mr. Gomes warns Canadian exports are being hurt by the industry's current focus on domestic markets, as well as the strength of the Canadian dollar compared with the U.S. currency.
He says exports to the U.S. slumped 32 per cent last month, while Canadian auto parts claimed only 6.7 per cent of the U.S. market.
Mr. Gomes says suppliers from low-cost countries such as Mexico are making significant inroads in both domestic and international markets, adding Canada has to boost innovation and investment in order to keep up.