Book excerpt: From the back cover: In this study, economist Ross Perry shows that all indicators point to a further restriction in the Canadian auto industry, resulting in further shrinkage of employment and the possibility of a major deterioration in the country's balance of payments. While the objective of the Auto Pact and Canadian automotive trade policy has always been job creation, Perry concludes that it will be increasingly difficult for the Canadian industry to be both viable and to generate jobs for the industrial heartland of Southern Ontario. Perry examines areas of specialization where Canada, with its advantages in energry-intensive products, could be competitive in the world market, and he outlines the two basic options for national policymakers - restructuring the industry for viability or resisting its decline.