Canada News Centre - Automotive Innovation Fund

The Government of Canada is committed to fostering the research and development necessary to keep Canada's automotive manufacturing sector innovative and globally competitive.

On January 4, 2013, Prime Minister Harper announced the renewal of the Automotive Innovation Fund, confirming the government's ongoing commitment to creating jobs, growth, and long-term prosperity for all Canadians.

About the Fund

The renewed Fund will provide $250 million over five years (2013-2018) to automotive companies in Canada in support of strategic, large-scale research and development projects. This support builds on the initial commitment of $250 million over five years, introduced in Budget 2008.?

The Government of Canada will consider investment proposals valued at more than $75 million. Each proposal for AIF support will be subjected to a comprehensive due diligence process to assess the project's feasibility and risk, as well as its ability to deliver the proposed innovation, technical, environmental and economic benefits.

The AIF aims to:

• build automotive research and development (R&D) capacity in Canada and secure high value jobs;
• enhance the government's science and technology (S&T) and environmental agendas;
• support the development, implementation and commercialization of advanced and green technologies, and advanced products or processes;
• promote long-term economic benefits to Canada including significant job creation/retention; and,
• serve as a catalyst for further private sector investments to foster Canadian competitiveness.
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The AIF provides support for major automotive innovation and R&D initiatives to develop and build greener, more fuel-efficient vehicles, including support for:

• leading-edge engineering and design and prototype development;
• new product development, including advanced emissions technologies, energy-efficient engines and transmissions, and advanced materials such as engineered plastics and lightweight components and materials;
• advanced product testing with a view to ensuring cleaner, more efficient automotive performance and reducing greenhouse gases;
• the development of new production methods and process technologies, including advanced flexible manufacturing techniques;
• new/expanded facilities to produce leading-edge, energy-efficient vehicles and powertrains; and,
  introduction of other transformative new production technologies to substantially increase productivity and efficiency (e.g., robotics and advanced IT systems).
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The AIF has provided repayable contributions to four companies to date, up to:

• $80 million towards an investment of up to $730 million by Ford Motor Company of Canada, to establish a flexible engine assembly plant and create an advanced powertrain research centre in Windsor, Ontario;
• $54.8 million towards an investment of up to $365 million by Linamar Corporation, to develop and commercialize advanced components and modules within three product areas: transmissions, engines and drivelines;
• $70.8 million towards an investment of $506 million by Toyota Motor Manufacturing Canada Inc. to maximize production efficiency, reduce emissions and upgrade equipment to permit the production of more fuel-efficient vehicles including electric vehicles; and?
• $21.7 million towards an investment of up to $199 million by Magna International to develop energy-efficient components for vehicles and innovative powertrain components for next-generation vehicles.?
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To date, investments have leveraged up to $1.6 billion in R&D and innovation investments in Canada's automotive sector and are contributing towards:

• economic activity and employment in the assembly and supplier ecosystem, and broader economy;
• development and commercialization of new products including advanced materials and emissions technologies (including the reduction of greenhouse gas emissions);
• advanced and expanded flexible manufacturing processes and facilities;
• enhanced research and development capacity;
• leading-edge engineering and design; and,
• made-in-Canada innovation.
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Other Support to the Automotive Sector

The AIF has been part of the Government's broader approach to ensuring that the right economic conditions are in place to support a strong Canadian auto industry.?

The Government of Canada's approach also includes a fiscal and economic framework that will keep the industry competitive, support for an integrated North American automotive assembly and supplier ecosystem such as the Windsor-Detroit Bridge, and investments in automotive research and development, including Automotive Partnership Canada, and Auto 21.? Canada offers some of the most generous R&D tax credits in the world.

Additionally, in 2009, the Government of Canada and Government of Ontario provided support to Canadian automakers in order to protect this key economic driver of the Canadian economy and the jobs this sector provides.

Source: http://news.gc.ca/web/article-eng.do?nid=713879

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