Canada faces fierce competition from other global jurisdictions for automotive manufacturing mandates. To compete successfully, both the federal and provincial governments need to coordinate and demonstrate a policy framework that provides a compelling rationale for new automotive investment in Canada.
A continued commitment from all levels of government is needed to make sure Canada has a solid business case to offer global investment decision makers that makes investment in Canada a viable option.
Federally, the Strategic Innovation Fund (SIF) provides companies with more flexibility by way of non-repayable contributions to automotive companies in support of strategic, large-scale research and development projects in the automotive sector to build innovative, greener and more fuel-efficient vehicles. CVMA commends the federal government and the department of Innovation, Science and Economic Development for taking this supportive step.
The Government has also announced the Innovation Superclusters Initiative to build a “shared competitive advantage for their cluster that attracts cutting-edge research, investment and talent by addressing gaps, aligning strengths, enhancing attributes, and positioning it as a world-leading innovation hotbed.”
The Province of Ontario offers the Jobs & Prosperity Fund that provides grant and loan funding for projects in advanced industries including advanced auto manufacturing.
These are examples of the kinds of incentives governments are using to support auto manufacturing here in Canada.