Canada Picks Ex-Toyota Exec as Auto Czar

Canada's federal government and the province of Ontario have named former Toyota Motor Corp. executive Ray Tanguay as special advisor to help them bolster their sagging auto industries.

Tanguay will become chairman of a subcommittee of the 13-year-old Canadian Automotive Partnership Council.

The Canadian native is former chairman of Toyota's Canadian operations and head of the company's North American quality initiatives. He retired in March.

Ontario estimates its auto sector has contributed 16% of all vehicle production in North America over the past five years. But its clout has been waning as carmakers direct much of their investments to the U.S. southern states and Mexico.

The Center for Automotive Research in Ann Arbor, Mich., points out that last year carmakers announced some $7 billion in new investment in Mexico and only about $750 million in Canada.

Critics say the country's relatively high labor costs and reluctance to offer competitive incentives are discouraging new investments.