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Canada to Invest $253 Million in Local Auto Industry
The Canadian government plans to spend C$250 million ($253 million) over five years to support automotive research and development in Canada in hopes of bolstering the company's auto employment.
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The Canadian government plans to spend C$250 million ($253 million) over five years to support automotive research and development in Canada in hopes of bolstering the company's auto employment.
The funding represents an extension of the Automotive Innovation Fund that Canada created in 2008. To be eligible for the financing, companies must invest at least C$75 million in the domestic auto sector.
Prime Minister Stephen Harper says the fund prompted $1.6 billion of investment in Canada's auto industry by such companies as Ford, Toyota, Linamar and Magna.
But the Automotive Parts Manufacturers Assn. of Canada and the Canadian Auto Workers union are urging Ottawa to go further to retain existing assembly plants and attract new ones. They contend the government needs to provide incentives like those offered by other countries and some U.S. states.
Analysts agree, noting that five Canadian assembly plants have closed since 2000 and only one new one opened.
Ford is currently seeking more than $400 million in financial assistance from Canada and the province of Ontario as part of its $1.2 billion plan to retool its assembly plant in Oakville, Ont.
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