Industryweek 14736 Manu Savvy

Is Canada Getting It Right by Funding Auto Innovation?

Jan. 4, 2013
Prime Minister Steven Harper;s announcement of a five-year extension of the $250 million Automotive Innovation Fund is a sound economic investment. That's because prior funding yielded a six fold investment return.

The answer is yes.

Prime Minister Steven Harper explains that today's announcement of a five-year extension of the $250 million Automotive Innovation Fund is a sound economic investment. That's because prior funding yielded a six fold investment return.  

The government says its original investment stimulated some $1.6 billion in innovative projects across the industry, and resulted in half a million spin-off jobs, as reported by the CBC News.

The Fund, established in 2008, was given for projects that would spur private sector investment of more than $75-million over the five years. The emphasis was on strategic, large-scale research and development according to an article in the Financial Post. 

Companies such as Magna International Inc., Ford Motor Co. of Canada, Ltd., Toyota Motor Manufacturing Canada, and Linamar Corp. have tapped the funds. 

However today's auto sector is waning with GM  halting production of a model in a plant in Ontario and Ford having already closed a plant in Ontario.  

So it seems new investment might just be what's needed.

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