By Mike Davey
Toronto, Ontario — February 16, 2017 — Two levels of government showed support for the automotive industry during the media preview day at the Canadian International AutoShow in Toronto. The support in question wasn’t in the shape of vague political statements, but cold, hard cash.
First, the government of Ontario, Ontario Centres of Excellence (OCE) and the Automotive Parts Manufacturers’ Association (APMA) issued a joint announcement regarding a total of 20 new technology innovation projects. According to the official statement, the projects will “advance Ontario’s global competitiveness in the automotive sector.”
Funding for the projects comes through Stream 1 of Ontario Centres of Excellence’s (OCE) Automotive Supplier Competitiveness Improvement Program (ASCIP).
In brief, ASCIP is a partnership between various organizations that seeks to increase the sourcing capabilities of Ontario-based small- and medium-sized automotive suppliers, while encouraging innovation and productivity initiatives that increase success in growing export markets. Projects are eligible for up to $100,000 in project funding, which must be matched by industry and contribute to the adoption of industry-leading IT. Projects can be up to two years in duration. More information on ASCIP is available at oce-ontario.org/programs.
“The automotive industry is rapidly evolving and in Ontario that evolution includes adopting industry-leading technology to remain competitive globally,” said Dr. Tom Corr, OCE’s President and CEO. “ASCIP will increase sourcing capabilities and productivity and drive success for Ontario’s auto suppliers to ensure they are able to continue to meet and exceed the high level of innovation and competiveness their clients have come to expect.”
The 20 successful projects will receive over $1.4 million in ASCIP funding to reimburse up to 50 percent of eligible program costs. This funding has been matched or exceeded by industry partners with cash and in-kind contributions to bring the total value of Stream 1 projects to more than $4 million.
“Ontario’s comprehensive and technology-intensive supply chain is a major asset as the province advocates for new automotive investment and vehicle production work,” said Brad Duguid, Ontario’s Minister of Economic Development and Growth. “Through this program, we are ensuring that more auto parts companies have access to leading-edge information technology that will boost innovation and increase productivity.”
The government of Canada also chose the AutoShow to make a funding announcement, committing $18.2 million for two innovation projects. The announcement was made by Navdeep Bains, Minister of Innovation, Science and Economic Development.
“The investments made today in Astrex and GBatteries will lead to new products and services that are more energy efficient, emit lower carbon emissions and promote healthier communities,” said Bains. “The investments will give middle-class Canadians working in the auto sector the opportunity to design and build the cars of the future. In the process, they will develop the skills that prepare them for the jobs of the future. That’s how innovation leads to a better Canada.”
Astrex, located in Lakeshore, Ontario, will receive a repayable contribution of up to $17 million from the Federal Economic Development Agency’s (FedDev Ontario) Advanced Manufacturing Fund. The investment will enable Astrex, a manufacturer of auto parts, to establish a facility that produces lightweight, high-strength aluminum components.
Another $1.2 million in a non-repayable contribution will go to GBatteries Energy Canada, located in Ottawa. The funding from Sustainable Development Technology Canada’s SD Tech Fund, which funds clean-technology projects, will allow the company to develop longer lasting batteries for electric cars. The battery system would also recharge much more quickly than existing ones.
