Linda Hasenfratz

This is a time of significant change and challenge in the automotive sector.

How do you see Linamar's ability to adapt?

Any time you have a change, you have opportunity. Here at Linamar, about 70% of our business is on the powertrain and driveline, focusing on machine components, modules and systems. Upwards of 70% of that kind of work is still done in-house by our key customers. In a time of turmoil, those customers are looking to cut costs and streamline operations. We've actually seen record amounts of new business in the last 18 months.

Linamar has manufacturing centres in Canada, the U.S., Mexico, Germany, Hungary, South Korea, China, and also Wales.

Which sites are the most competitive?

Labour costs in our Chinese plants and our Mexican plants are clearly lower. On the other hand, efficiency and productivity and the ability to continuously improve is higher in our Canadian plant. So it is a bit of a toss-up. Our philosophy is to manufacture in the continent of consumption. The reason I bring that up is to point out that my plants in China don't compete with my plants in Canada for the same business.

That's interesting. You've been outspoken about the impact of the Canadian dollar and how it's a challenge to manufacturers. What do you think Ottawa should do?

I need the government to recognize that the change in the dollar impacts our tax dollar comparisons to U.S. competitors, drastically. For instance, we pay $100 million of tax in Canada today. Using the exchange rate of five years ago, it would have been $67 million. In essence, I've taken a $30-million hit to productivity relative to my U.S. competitors. I think that the corporate tax rate combined, between the federal and provincial, cannot exceed 20%.

So when the Harper government announced its progressive reductions in income tax and Queen's Park said we're not going to get to that, what was your reaction?

Well, I was very concerned, frankly, and I've urged Ottawa and Queen's Park to reconsider their position. I mean, we can push--and we do--to be more efficient, to be more productive, but there's only so much I can make up for.

Your family has a long record of building Linamar, and now the mantle is on your shoulders. How do you maintain a personal and family balance?

I think that the way you do that--the way I've done that--is to take things in my personal life that aren't value-added and get somebody else to do them for me, so that when I'm not working, I can really focus my time on being with my family.