Ottawa, February 17, 2012—The Honourable Christian Paradis, Minister of Industry, today announced a federal investment of up to $21.79 million in support of Magna International's clean vehicle technologies development. The focus is on developing energy-efficient components for vehicles and innovative powertrain components for next-generation vehicles.
"Investments in R&D are catalysts for further private sector activity and innovation, and they foster Canadian competitiveness throughout the automotive sector," said Minister Paradis.
Magna's development work is concentrated on three technology areas: lightweight composite materials, the use of recyclable materials to replace traditional petroleum-based materials, and automotive components for use in electric and hybrid vehicles.
The federal government's repayable contribution of up to $21.79 million is being made through the Automotive Innovation Fund. This investment, complementing support from the Government of Ontario announced last August, will help offset Magna's total project costs, which could reach up to $199 million.
"With our own R&D investment commitment and support from the federal government, we will be able to raise our competitive advantage, deliver more clean vehicle innovations and help continue employment here in Canada," said Don Walker, CEO of Magna International.
"Our government is committed to these kinds of investments, as they provide jobs and growth and foster the development of innovative component technologies that will result in greener, more fuel-efficient vehicles," said Minister Paradis. "Our comprehensive approach includes a fiscal and economic framework that will keep the industry competitive, create jobs and growth, and develop and commercialize new technologies."
Automotive is the largest manufacturing sector in Canada, representing 12 percent of our manufacturing output and 20 percent of manufactured exports. In 2011, the auto industry directly employed more than 109,000 Canadians, as well as another 332,000 indirectly.
For further information (media only), please contact:
Richard Walker
Director of Communications
Office of the Honourable Christian Paradis
Minister of Industry
613-995-9001
Media Relations
Industry Canada
613-943-2502
The Government of Canada has committed up to $21.79 million to Magna International's clean vehicle technologies development, projects that could total up to $199 million by March 31, 2013.
The Projects will see the research and development (R&D) and commercialization of a wide range of advanced powertrain components and modules that will reduce their weight, be manufactured from renewable or sustainable resources, and reduce the energy consumption of vehicles by developing more energy efficient systems. These components and modules are expected to contribute to increases in fuel economy and, ultimately, lead to manufacturing components for advanced technology vehicles.
The use of recyclable and/or natural materials will also be a focus. These are used over traditional petroleum-based materials in the manufacturing of automotive components, such as using natural rubber rather than oil-based content materials as a means to reduce the environmental impact of the production process. R&D will also be undertaken to contribute to the improvement of production efficiencies and environmental performance of advanced manufacturing applications, such as the creation of a new high-efficiency windshield speaker.
The Automotive Innovation Fund (AIF) was introduced in Budget 2008 and provides $250 million over five years to automotive firms in support of strategic R&D projects to build innovative, greener and more fuel-efficient vehicles.
The AIF provides support to projects that deliver on the government's wider science and technology (S&T) agenda. The AIF also supports Canada's environmental agenda in advancing R&D and innovation to increase fuel efficiency and reduce greenhouse gas emissions, thereby contributing to meeting the objectives of Canada's Clean Air Agenda and new fuel consumption regulations.
Funding through the AIF is provided in the form of unconditionally repayable contributions. At the end of the payback period, funding recipients will have paid back the contribution in full. Each proposal for AIF support is 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, environmental and economic benefits.
Magna is ranked the fifth-largest global automotive parts supplier and is the largest North American automotive parts supplier. Magna International is one of the most diversified automotive suppliers in the world. It designs, engineers and manufactures technologically advanced automotive systems, assemblies, modules and components, engineers and assembles complete vehicles, primarily for sale to OEMs of cars and light trucks. Magna's capabilities include the design, engineering, testing and manufacture of interior systems; seating systems; closure systems; body and chassis systems; vision systems; electronic systems; powertrain systems; roof systems, as well as complete vehicle engineering and assembly.
Headquartered in Aurora, Ontario (Canada), Magna employs approximately 107,000 people at 286 manufacturing divisions and 88 product development and engineering centres in 25 countries throughout North and South America, Europe, and Asia. In Canada, Magna counts 44 manufacturing centres and 10 engineering/product development/sales centres.
