Industry Canada

Industry Canada

June 03, 2015 13:20 ET

Creating Jobs in Canada's Auto Sector

Government launches Automotive Supplier Innovation Program to support new product development

WINDSOR, ONTARIO--(Marketwired - June 3, 2015) - Industry Canada

At the opening of the Automotive Parts Manufacturers' Association 2015 Annual Conference and Exhibition, the Government of Canada announced the launch of the Automotive Supplier Innovation Program (ASIP). As of today, the Government will accept applications for contributions under the new program. The new fund will support innovation by encouraging important new investments in automotive-sector activities such as prototype development, process engineering and product testing.

As manufacturers look to meet demands for fuel-efficient vehicles with sophisticated technologies, new opportunities are arising to develop and supply components to satisfy this need. In order to stay competitive, automotive suppliers, many of which are small and medium-sized enterprises, are looking to make new product development the cornerstone of their business strategies.

ASIP will provide contributions to support technology demonstration and prototyping activities to facilitate Canadian innovation, ensuring that Canadian suppliers are able to compete and win business globally. Through a five-year, $100-million commitment announced in Economic Action Plan 2015, this program helps Canadian suppliers-primarily small and medium-sized businesses-bring transformative ideas in their early stages to the marketplace, so that Canadian-made components find their place in the global value chain of automotive manufacturers.

Quick facts

  • The Automotive Supplier Innovation Program will complement existing initiatives that support the automotive sector, such as the Automotive Innovation Fund.
  • The program will strengthen Canada's parts supply base and create a favourable environment for automotive research and development. It will also position firms to take advantage of new opportunities to enter global supply chains.
  • Canada's automotive parts sector represents close to $24 billion in sales annually and employs over 65,000 people. It contributes $8 billion to Canada's GDP. The automotive supply sector includes a large proportion of smaller companies, with roughly 80 percent considered to be small suppliers (fewer than 100 employees).
  • Canadian suppliers export automotive parts globally and help Canadian-based assembly facilities build almost 2.4 million cars annually-roughly one car every 13 seconds.
  • The Government has also provided other fiscal and economic measures to help keep the automotive industry competitive, including a sound banking system, red tape reduction, the lowest overall tax rate on new business investment in the G7, the lowest debt-to-GDP ratio in the G7, and a 10-year extension of accelerated capital cost allowances.
  • The Automotive Parts Manufacturers' Association 2015 Annual Conference and Exhibition is taking place in Windsor, Ontario. The event brings together Canadian, American and international automotive industry leaders. The focus of this year's event will be on increasing innovation, focusing on core competencies and managing growth.


"Our government is committed to helping Canada's automotive suppliers do what they do best: develop products and contribute their expertise to creating jobs in Canada's auto sector. Our government is committed to taking the steps necessary to ensure that Canada's manufacturing sector remains a vital part of this country's economy."

- James Moore, Minister of Industry

"For our government, the words 'Made in Canada' continue to fuel pride and stimulate jobs. Still, we cannot address the challenges of tomorrow with yesterday's thinking. We must give manufacturers the tools they need to create the products-and the jobs-of the future. This is why we are so proud of the Automotive Supplier Innovation Program."

- Gary Goodyear, Minister of State (Federal Economic Development Agency for Southern Ontario)

Related product

- Automotive Supplier Innovation Program

Associated link

- Automotive Innovation Fund

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Contact Information

  • Jake Enwright
    Press Secretary
    Office of the Minister of Industry

    Media Relations
    Industry Canada