07 January 2013

Canada announces renewal of C$250 million Automotive Innovation Fund (AIF)

- Strategic importance of  automotive sector to economy & job market
- Leveraged up to $1.6 billion in R&D and innovation investments 
- Automotive sector contributes 12% of Canada's manufacturing GDP 
- Employs 111,000 Canadians directly & another 338,000 indirectly

Oakville, Ontario - 04 January 2013 – Canadian Prime Minister Stephen Harper announced the renewal of the Automotive Innovation Fund (AIF), highlighting the strategic importance of the automotive sector to Canada's economy and job market. The Prime Minister was accompanied by Lisa Raitt, Minister of Labour.

"Our Government remains focussed on creating jobs, growth and long-term prosperity and to keeping Canada's automotive manufacturing sector globally competitive and innovative," said Prime Minister Harper. "The Automotive Innovation Fund has a proven track record of generating results for Canadians in terms of jobs, prosperity and foreign investment in Canada." 

The AIF provides support for leading-edge innovation in automotive manufacturing and research and development (R&D) to build advanced, greener products and processes. 

The AIF was first introduced in Budget 2008. To date, investments have leveraged up to $1.6 billion in R&D and innovation investments in Canada's automotive sector, including promoting enhanced R&D capacity, leading-edge engineering and design, and made-in-Canada innovation. Since AIF's inception, the following companies have benefitted from the Fund: Ford Motor Company of Canada, Linamar Corporation, Toyota Motor Manufacturing Canada Inc. and Magna International. 

Canada's automotive industry is a key economic driver, contributing 12 percent of the country's manufacturing GDP and 12 percent of total merchandise exports. The industry employs approximately 111,000 Canadians directly and another 338,000 indirectly. 

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. 

Source: PM of Canada Office / Industry Canada