2009 Auto Restructuring
Minister Clement Introduces Changes to Automotive Innovation Fund
TORONTO - At a meeting held October 30, 2009, with the Canadian Automotive Partnership Council (CAPC), Tony Clement, Minister of Industry, introduced changes to the Government of Canada's Automotive Innovation Fund (AIF) in order to increase investment in automotive research and development (R&D). The total investment threshold required to qualify for AIF funding has been lowered from the initial $300 million over five years to $75 million over the same time frame.
"Continued investment in R&D is a catalyst for success in the auto industry," said Minister Clement. "Reducing the threshold allows the AIF to be extended to a broader spectrum of automotive companies throughout the country, which we expect will generate further investments in automotive R&D."
The reduction to a $75-million threshold over five years is expected to attract additional strategic projects, which in turn will increase automotive R&D capacity in Canada and secure knowledge-based jobs.
The AIF, created as part of Budget 2008, provided $250 million over five years to automotive firms in support of strategic R&D projects to build innovative, greener and more fuel-efficient vehicles.
CAPC is a private, sector-led council that was created in 2002 to initiate dialogue between key automotive industry stakeholders and government.
For more information on CAPC, please visit the CAPC website (http://capcinfo.ca).