Canada's Automotive Suppliers Are Building the Car of the Future

KITCHENER, ONTARIO--(Marketwired - April 13, 2016) - Innovation, Science and Economic Development Canada

Today, the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, accompanied by the Honourable Bardish Chagger, Minister of Small Business and Tourism, announced investments of approximately $19.6 million in seven new projects through the Government of Canada's Automotive Supplier Innovation Program.

The ministers made the announcement at Pravala Car in Kitchener, which will receive a contribution of up to $9.7 million to develop a platform that provides reliable and uninterrupted Internet connectivity in vehicles.

From the software and systems that will define the autonomous and connected cars of tomorrow to the lighter and stronger parts that will help make cars more environmentally friendly, Canada's automotive supply chain is at the centre of Canadian automotive innovation. The Automotive Supplier Innovation Program supports this innovation and helps Canadian suppliers take full advantage of new opportunities in a sector that is driven by modern technologies.

The Government of Canada continues to invest in small and medium-sized businesses that are bringing new technologies from early stage development to the global automotive marketplace. In addition to today's investments, the Government, as announced in Budget 2016, will extend the Automotive Innovation Fund through to the end of 2020-21, a program that was scheduled to sunset at the end of the 2017-18 fiscal year.

Quote

"These projects under the Automotive Supplier Innovation Program demonstrate how Canada's innovative automotive suppliers are developing the green technologies that will shape the cars of the future. Through our efforts, in addition to the Budget 2016 commitment to extend the Automotive Innovation Fund to the end of 2020-21, we are helping Canada's automotive sector to innovate, grow and improve its global competitiveness."

- The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development

Quick facts

• Canada's automotive sector is the country's largest manufacturing sector, producing over 2 million vehicles per year, roughly one car every 13 seconds.
• It employs some 121,500 Canadians directly and another 390,700 indirectly with the largest job multiplier of any sector: six jobs for every assembly job.
• Canada has an opportunity to draw on its research strengths in areas such as automotive lightweighting and information and communications technologies to help design and build the cars of the future. As announced in Budget 2016, the Government will extend the Automotive Innovation Fund through to the end of 2020-21 so that this expertise can be deployed together with partners and stakeholders.

Follow Minister Bains on Twitter: @MinisterISED

Backgrounder

Automotive Supplier Innovation Program

On April 13, 2016, the Government of Canada announced $19.6 million in funding for seven new projects under the Automotive Supplier Innovation Program (ASIP). This program helps Canadian automotive suppliers gain a competitive edge through the development of new innovative products and processes.

• Pravala Car in Kitchener, Ontario, will develop a platform that provides reliable and uninterrupted network connectivity to vehicles (a contribution of up to $9.7 million).
• Exco Technologies Limited in Markham, Ontario, will make large high-pressure die-cast moulds for power train and structural parts using less steel, thereby reducing waste and enabling faster production of these automotive components (a contribution of up to $4.6 million).
• Verbom Inc. in Sherbrooke, Quebec, will develop its process used in forming complex aluminum body panels and parts, leading to reduced overall vehicle fuel consumption (a contribution of up to $2.6 million).
• The Electromac Group in Windsor, Ontario, will develop an innovative prototype and process that involves using hot stamping technology to produce small components that are stronger and lighter (a contribution of up to $1.5 million).
• Axiom Plastics in Aurora, Ontario, will produce a new hybrid plastic/fabric vehicle component that will be lighter than the current component and will provide increased noise and emissions reduction (a contribution of up to $881,000).
• Mojio in Vancouver, British Columbia, will develop cloud-connected solutions to improve driver connectivity (a contribution of up to $260,000).
• Landau Gage in Windsor, Ontario, will use its unique laser measurement technology to reduce measurement and inspection time of automotive drive train products (a contribution of up to $121,000).

Launched in 2015, ASIP complements the government's Automotive Innovation Fund, which has leveraged over $3.1 billion in Canada's auto industry since 2008. Each ASIP project is assessed against program criteria to ensure that it meets all terms and conditions. Contributions from the government cover up to 50 percent of the eligible costs. As part of Budget 2016, the Government of Canada will extend the Automotive Innovation Fund, currently scheduled to be phased out at the end of 2017–18, through to the end of 2020–21. Going forward, the government has also committed to examining approaches that will allow federal support to be more effective, including assessing the terms of the Automotive Innovation Fund.

Canadian automotive suppliers export parts globally and are integral to Canada's automotive sector, accounting for about $30 billion in sales. Manufacturers are looking to meet demands for fuel-efficient vehicles with sophisticated technologies, which creates new opportunities for Canadian automotive suppliers to develop and supply components.

Canada has strengths in traditional automotive supply chains, including as tool, die and mould makers, but also has a large IT sector specializing more and more in products and solutions for the automotive sector. In order to take advantage of important opportunities and grow their business, automotive suppliers must innovate and make new product development a cornerstone of their business strategies.

In 2015, Ontario was the second-largest vehicle-producing jurisdiction in North America, with five global original equipment manufacturers and a strong and established cluster of about 700 parts suppliers.

To learn more about the Automotive Supplier Innovation Program, including application criteria, please consult our website at http://www.ic.gc.ca/eic/site/auto-auto.nsf/eng/h_am02377.html.