Harper Government Invests in Jobs and Growth With Next-Generation Auto R&D
OTTAWA, ONTARIO--(Marketwire - Feb. 17, 2012) - The Honourable Christian Paradis, Minister of Industry, today announced a federal investment of up to $21.79 million in support of Magna International's clean vehicle technologies development. The focus is on developing energy-efficient components for vehicles and innovative powertrain components for next-generation vehicles.
"Investments in R&D are catalysts for further private sector activity and innovation, and they foster Canadian competitiveness throughout the automotive sector," said Minister Paradis.
Magna's development work is concentrated on three technology areas: lightweight composite materials, the use of recyclable materials to replace traditional petroleum-based materials, and automotive components for use in electric and hybrid vehicles.
The federal government's repayable contribution of up to $21.79 million is being made through the Automotive Innovation Fund. This investment, complementing support from the Government of Ontario announced last August, will help offset Magna's total project costs, which could reach up to $199 million.
"With our own R&D investment commitment and support from the federal government, we will be able to raise our competitive advantage, deliver more clean vehicle innovations and help continue employment here in Canada," said Don Walker, CEO of Magna International.
"Our government is committed to these kinds of investments, as they provide jobs and growth and foster the development of innovative component technologies that will result in greener, more fuel-efficient vehicles," said Minister Paradis. "Our comprehensive approach includes a fiscal and economic framework that will keep the industry competitive, create jobs and growth, and develop and commercialize new technologies."
Automotive is the largest manufacturing sector in Canada, representing 12 percent of our manufacturing output and 20 percent of manufactured exports. In 2011, the auto industry directly employed more than 109,000 Canadians, as well as another 332,000 indirectly.
