Ontario Collaboration Secures Global Competitiveness in Automotive Industry
The Ontario automotive sector contributed over $16 billion to the province’s GDP in 2014 alone. Ontario remains one of the strongest hubs in North America for the manufacturing and assembly of automobiles and Ontario’s economy is largely impacted by the performance of its industry players. The industry is rapidly evolving and therefore companies and government bodies must be willing to embrace current trends to remain competitive. By collaborating and sharing resources, the sector will be able to leverage more opportunities and further compete on a global scale.
“Ontario’s auto sector is a cornerstone of our economy — a key source of our ability to export, innovate and create jobs. In this highly competitive global economy, we need to drive further investment and ensure the sector remains strong.”
– Brad Duguid, Minister of Economic Development, Employment, and Infrastructure
CAPC Collaborates with Provincial and Federal Governments
Ontario is the only sub-national jurisdiction to support five of the world’s most successful auto companies (Chrysler, Ford, General Motors, Honda and Toyota.) As such, the Canadian Automotive Partnership Council (CAPC) and the Government of Canada are collaborating to create a new CAPC sub-committee to advise government and businesses on investment initiatives. The sub-committee will receive direction from Chairman Ray Tanguay, one of the industry’s strongest advocates, and former Chairman of Toyota’s Canadian operations.
“Today, working in close collaboration with the industry, the Government of Canada and the Government of Ontario are taking clear, proactive action to strengthen the future of Canada’s auto sector as the destination for auto investment.”
– James Moore, Minister of Industry
The sub-committee for CPAC will provide both levels of government with strategic advice about the attraction of Ontario government funding for the automotive industry. Through this collaboration, industry and governments will create a synergy that positions Ontario’s automotive sector for long-term success through valuable government grant funding and corporate investments.
Canadian Government Grants and Loans for Automotive Businesses & Suppliers
While this news will undoubtedly strengthen the amount of automotive investment in Ontario, several Canadian government funding programs already exist which aids manufacturers and assemblers to become more competitive.
The Automotive Supplier Innovation Program (ASIP) provides Canadian government grants for product and process development. A maximum of $10 million in grant funding up to 50% of eligible costs may be secured for prototyping, product engineering, and pre-commercial testing.
The Automotive Innovation Fund (AIF) assists Canadian automotive businesses by providing repayable grants valued between 10-15% of eligible costs for innovative research and development activities. Over $250 million in government funding has been allocated to the 5 year initiative, past projects have been loaned from $16-$80 million.
Resources for the Canadian Automotive Industry
While several government grants for small businesses exist for auto manufacturers and assemblers, Mentor Works provides other tools and resources that will enable you to capitalize on government initiatives. Register for one of our free manufacturing funding webinars and explore all of the opportunities currently available to your business. Automotive manufacturers seeking to export their products may wish to check out our new Canadian Business Guide to Export Expansion for a wide selection of government and industry tools, as well as statistics and other information to help you make an informed decision.
Have questions about Canadian government funding, or how your business can better leverage these opportunities? Contact Mentor Works today to talk to one of our government funding experts. To stay updated on current government funding trends, feel free to follow us on Twitter or like us on Facebook for daily posts of the most relevant information to your small business.