The automobile industry is an outstanding example of branch plant expansion in the international field. Proximity to the American centres of automobile production, the policy of tariff protection pursued in the Dominion, and the similarity of Canadian and American manufacturing methods made possible its rapid extension north of the American border.
Ford of Canada was incorporated with an Ontario charter in 1904 just fourteen months after the establishment of the parent concern in Detroit. (A Dominion charter was secured in 1911.) The initiative in the establishment of a Ford assembly plant in East Windsor seems to have come from a group of Canadian business men, and all the actual capital investment in 1904 came from Canadian sources. The Ford Motor Company of Michigan received 51 per cent of the original stock, in amount $63,500, in consideration for which it agreed to extend to the Canadian concern the privilege of using in perpetuity all patents, improvements, and devices used to produce Ford products in the United States. This privilege included the use of such rights in Canada, New Zealand, Australia, South Africa, and some minor British possessions. In the formation of General Motors of Canada the initiative again came from Canada. The McLaughlins of Oshawa, formerly carriage manufacturers, were instrumental in starting the manufacture of the Buick car in 1907. They contributed substantial properties to the enterprise and, for a time, appear to have retained a majority interest in the concern's stock; but the General Motors Corporation of Canada, which grew out of the McLaughlin Motor Car Company, is now a wholly-owned subsidiary of the American concern.