Promoting Investment in Canada's Automotive Industry

DETROIT, MICHIGAN--(Marketwired - Jan. 13, 2015) - Industry Canada

Industry Minister James Moore today promoted Canada as a great place to build cars while meeting with the automotive industry during a visit to the North American International Auto Show (NAIAS) in Detroit, Michigan. The Minister highlighted the Harper government's decisions that make Canada the most attractive country in the world for investment, including:

• creating and renewing the Automotive Innovation Fund (AIF), leveraging up to $2.3 billion in research and development in Canada's auto industry;
• opening new markets for Canadian products and services by signing trade deals with 38 countries, including the European Union, that will provide Canadian businesses with market access to over half the global marketplace; and
• reducing Canada's federal corporate income tax rate to 15 percent, well below the comparable rates of most other G7 countries.

Minister Moore also toured the NAIAS floor. He saw first-hand the breakthrough technologies and fresh designs traditionally associated with one of the largest gatherings of the global automotive industry.

Quick facts

• Canada produces about 15 percent of vehicles assembled in North America.
• The Economist has rated Canada's business environment as the best in the G7 among auto-producing nations to 2015. A key part of supporting manufacturers is ensuring they have global markets for the goods they produce. Through the Global Markets Action Plan, the government has concluded seven different free trade pacts with 38 countries. It has also concluded or implemented foreign investment promotion and protection agreements with 22 countries and continues to deepen trade ties with the largest, most dynamic markets in the world.
• Canada's two most recent trade agreements, the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Canada-Korea Free Trade Agreement, promise to add at least $14 billion annually in new economic activity, equivalent to creating more than 90,000 new jobs.
• CETA provides historic new market access opportunities for the automotive sector and will allow significant increases of exports to Europe. The removal of tariffs along with flexible rules of origin will benefit vehicle and auto parts producers alike.
• The Automotive Innovation Fund supports advanced, strategic R&D initiatives by Canada's automotive companies to bring innovative and more fuel-efficient vehicles to market.
• The Automotive Innovation Fund will enhance Canada's automotive research capacity, fuelling made-in-Canada innovation, increasing our ability to compete internationally and bringing long-term benefits to the sector. Automotive companies continue to invest in this country:
  • On January 12, Linamar, with support from the Government of Canada, announced a $507-million investment in its Guelph facilities, creating 1,200 new full-time, well-paying jobs.
  • In September 2013, Ford, with support from the Government of Canada, announced an investment of $716 million at its Oakville assembly facility to install a global platform and expand its R&D activities in Canada. This investment yielded 1,000 new jobs at the Oakville facility.
  • Chrysler has announced its commitment to make significant investments in its Windsor Assembly Plant to produce its next-generation minivan, as well as to produce the next-generation models of the Charger, Challenger and Chrysler 300 in its Brampton Assembly Plant.
  • GM is committed to investing a minimum of US$850 million in R&D activities in Canada between 2009 and 2016 and in March 2013 announced it would invest $250 million at its CAMI facility.
  • Toyota has added 800 jobs at its Woodstock and Cambridge plants as a result of projects Lexus and Green Light.

Quote

"In Detroit, Canada's numerous automakers proudly distinguished themselves among the top-quality vehicle manufacturers globally. The numbers speak for themselves: Canadian automakers made over 20 different types of vehicles in 2014 and saw record-breaking sales. Companies are now actively looking to invest in Canada, creating jobs and growth and securing the future of Canada's automotive sector. Our government is committed to setting the right conditions for Canada's world-class automotive industry to continue to succeed and deliver for Canadians."

- James Moore, Industry Minister

Associated links

- Canadian Automotive Industry home page

- NAIAS website

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