February 26, 2015
The new Ford Edge, a crossover vehicle that will be produced at Ford's Oakville facility, is in part the result of a repayable contribution of up to $71.6 million through the Automotive Innovation Fund (AIF) to Ford's Project Northern Star in 2013.
The contribution to Ford Motor Company of Canada is helping transform its Oakville plant into a state-of-the-art, global manufacturing facility, making it one of only five Ford facilities worldwide to have the flexible global CD4 platform.
Project Northern Star is part of a five-year, $716-million project to establish a global platform in Oakville, including the expansion of Ford's R&D activities in Canada. The project will create jobs not only in Oakville but also across the Canadian supply chain.
The Harper Government first introduced the AIF in Budget 2008, providing $250 million over five years. On January 4, 2013, Prime Minister Harper announced the renewal of the AIF. The renewed fund is providing $250 million over five years (2013–2018) to automotive companies in Canada in support of strategic, large-scale R&D projects. In Budget 2014, the government announced another $500 million over two years for the AIF.
The AIF aims to:
- build automotive R&D capacity in Canada and secure high-value jobs;
- enhance the government's science and technology and environmental agendas;
- support the development, implementation and commercialization of advanced and green technologies and advanced products or processes;
- promote long-term economic benefits to Canada, including significant job creation and retention; and
- serve as a catalyst for further private sector investments to foster Canadian competitiveness.
AIF support has leveraged up to $2.77 billion in R&D and innovation investments in Canada's automotive sector and is contributing to:
- the development and commercialization of new products;
- advanced and expanded flexible manufacturing processes and facilities;
- enhanced research and development capacity;
- leading-edge engineering and design; and
- made-in-Canada innovation.
To date, the AIF has provided repayable contributions to four companies, including up to:
- $80 million toward an investment of up to $730 million by Ford Motor Company of Canada to establish a flexible engine assembly plant and create an advanced powertrain research centre in Windsor, Ontario;
- $54.8 million toward an investment of up to $365 million by Linamar Corporation to develop and commercialize advanced components and modules in three product areas: transmissions, engines and drivelines;
- $70.8 million toward an investment of up to $506 million by Toyota Motor Manufacturing Canada Inc. to maximize production efficiency, reduce emissions and upgrade equipment to permit the production of more fuel-efficient vehicles including electric vehicles;
- $21.7 million toward an investment of up to $199 million by Magna International to develop energy-efficient components for vehicles and innovative powertrain components for next-generation vehicles;
- $16.8 million toward an investment of up to $120 million by Toyota Motor Manufacturing Canada Inc. to establish an assembly line for the new Lexus RX450h hybrid, supporting hybrid expertise in the Canadian supplier base, and to increase capacity for the RX350 model in Cambridge, Ontario;
- $71.6 million toward an investment of up to $716 million to install a state-of-the-art global manufacturing platform at Ford Motor Company of Canada's Oakville Assembly Complex and to conduct fuel consumption and emissions R&D; and
- $50.7 million toward an investment of up to $507 million by Linamar Corporation to develop and produce innovative fuel-efficient powertrain components for next-generation automotive transmissions.
Canada has much to offer the automotive manufacturing industry: the AIF, a large and sophisticated supply cluster, the new bridge between Windsor and Detroit, support for automotive R&D, a stable economy, a highly skilled and productive workforce, well-developed infrastructure, access to markets and a favourable environment for automotive R&D.
The AIF is part of the government's broader approach to create economic conditions that support a strong Canadian auto industry. The government's approach also includes a fiscal and economic framework that will keep the industry competitive, including:
- a sound banking system;
- the lowest overall tax rate on new business investment in the G7;
- the lowest debt-to-GDP ratio in the G7;
- a triple-A credit rating; and
- investments in automotive R&D.