Canada Offers $500 Million to Lure Auto Investment

Canada is adding C$500 million ($454 million) to an innovation fund intended to coax carmakers to invest in major R&D projects in the country, Bloomberg News reports.

Chrysler Group is an obvious target for the expanded program. Bloomberg notes that the carmaker reportedly is pondering a multi-billion-dollar project to expand its huge minivan complex in Windsor, Ont.

Canada's National Post reported last week that Chrysler has asked for as much as C$460 million from the federal and provincial governments to help update the Windsor factory and support R&D related to the products built there.

The Automotive Innovation Fund has spent C$316 million since 2008 to support six R&D projects. The Canadian government says the program has attracted some C$2.3 billion ($2.1 billion) in private investment so far.

Canada is the world's biggest exporter of vehicles to the U.S. But last week IHS Automotive said Mexico appears likely to claim that ranking in 2015.