Automotive Supplier Innovation Program
Backgrounder
On August 31, 2016, the Government of Canada announced nearly $3 million in funding for four 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.
- Bluewrist Inc., in Markham, Ontario, will develop an innovative scanning inspection system. This system, which will be five times faster than existing technologies, will increase quality control capabilities for manufacturers while reducing waste and saving energy (a contribution of up to $821,445).
- Smarter Alloys Inc., in Waterloo, Ontario, will develop advanced alloys that can retake their shape for use in mechanisms such as grill shutters and door latches. New mechanisms made of "smart" alloys will replace unreliable and bulky systems used today by automotive manufacturers (a contribution of up to $1,121,000).
- A.P. Plasman, a Division of Plasman Group, in Windsor, Ontario, will develop 3D-printed work in-process fixtures, such as measurement tools, to replace their current steel-machined fixtures. These new fixtures will reduce costs, increase energy efficiency and increase global competitiveness (a contribution of up to $366,688).
- Invotek Electronics Inc., in Markham, Ontario, will develop an innovative radar system for cars. This radar system will be compact and will allow radar systems to be installed on vehicles in areas that have traditionally been inaccessible, thereby contributing to greater safety (a contribution of up to $412,025).
Launched in 2015, ASIP complements the government's Automotive Innovation Fund, which has leveraged over $3.1 billion in investments 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 has extended the Automotive Innovation Fund through to the end of 2020–21. 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.
Integral to Canada's automotive sector, Canadian automotive suppliers account for about $32 billion in sales, and they export automotive parts globally. As manufacturers look to meet demands for fuel-efficient vehicles with sophisticated technologies, new opportunities are arising for Canadian automotive suppliers to develop and supply components.
Canada has strengths in traditional automotive supply chains, including in tool, die and mould making, 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 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 over 670 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.
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Hon. Navdeep Singh Bains Innovation, Science and Economic Development Canada Economics and Industry