Creating Jobs in Canada's Auto Sector

NEWMARKET, ONTARIO--(Marketwired - July 31, 2015) - Industry Canada

Canada's automotive supply chain is essential to the success of automotive manufacturers in Ontario, and a strong supply chain encourages more international investment by large automotive firms.

To support the growth of Ontario's automotive supply chain, Lois Brown, Member of Parliament for Newmarket-Aurora, today announced a $1.84-million investment in Palcam Technologies Ltd. through the Automotive Supplier Innovation Program (ASIP). This support will create 100 high-quality jobs and leverage a $3.6-million private sector investment by Palcam.

With this investment, Palcam will develop new technologies that improve the effectiveness and reliability of aluminum die casting. These advancements will enable lighter vehicle designs and improved fuel efficiency. This project will help position Canada at the leading edge for the adoption of 3D printing technology in the automotive sector in North America.

The Harper Government is supporting automotive suppliers in developing groundbreaking, advanced products. This support is essential to helping small and medium-sized businesses bring new technologies to the marketplace for Canadian automotive consumers.

Quick facts

• Economic Action Plan 2015 provided $100 million over five years, starting in 2015-16, for the creation of the Automotive Supplier Innovation Program to help Canadian automotive suppliers gain a competitive edge through new innovative products and processes.
• The Automotive Supplier Innovation Program complements the Automotive Innovation Fund (AIF), which was first introduced in 2008, renewed in 2013 and then doubled in 2014. Since its beginnings, the AIF has had a total of $950 million to support significant new strategic research and development projects and long-term investments in the Canadian automotive sector. Since 2008, the AIF has leveraged almost $2.8 billion in Canada's auto industry.
• The automotive sector employs about 121,500 Canadians directly and another 390,700 indirectly in distribution and after-market sales. Canada's automotive parts sector alone contributes $8 billion to Canada's GDP.
• The Government of Canada has also delivered on other fiscal and economic measures to help keep the auto 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 triple-A credit rating.

Quotes

"Ontario's automotive supply chain is one of the very best in the world. Companies that operate in Canada benefit from low taxes, global trade opportunities and a skilled workforce-advantages unmatched by any other jurisdiction in the world. The Harper Government will continue to support policies that grow Ontario's automotive industry and create high-quality jobs across the province."

- Lois Brown, Member of Parliament for Newmarket -Aurora

"These launch investments demonstrate the government's willingness to partner in commercializing unique Canadian innovation in real time. The lean and effective ASIP is a great example of what the public and private sector can do together to support continued world-class automotive manufacturing in Ontario."

- Flavio Volpe, President, Automotive Parts Manufacturers' Association (APMA)

Associated link

Automotive Supplier Innovation Program

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