Yesterday, Christian Paradis, Canada’s Minister of Industry, attended the 2013 North American International Auto Show in Detroit, in an effort to promote Canada as a world-leading destination for automotive investment.
“Thanks to actions taken by our government, Canada is a premier place to do business and a great place to build cars,” Paradis declared. “Given our low tax rate, solid fiscal framework, investments in R&D and highly skilled workforce, I look forward to further investments in Canada.”
Canada”s automotive industry is a key economic driver. It plays a significant role in the economy, contributing 12 per cent of manufacturing GDP and 11 per cent of total merchandise exports. The industry employs approximately 111,000 Canadians directly and another 338,000 indirectly. Five major manufacturers currently assemble vehicles in Canada: General Motors, Chrysler Group, Ford Motor Company, Toyota Motor Corporation and Honda Motor Company.
“Jobs, growth and economic prosperity continue to be our government’s top priorities,” said Paradis. “We are serious about auto manufacturing in Canada, and the recently announced Automotive Innovation Fund underscores that commitment in a big way. We are ensuring Canada continues to be a centre of automotive innovation, a place where the “car of the future” is built.”
Earlier this month, Prime Minister Stephen Harper announced the renewal of the Automotive Innovation Fund (AIF), a five-year, $250 million investment that was first introduced in Budget 2008. AIF investments are designed support leading-edge, innovative projects in automotive manufacturing and R&D to develop advanced and greener products and processes. Since the program was first launched it has leveraged up to $1.6 billion in investments in Canada’s auto sector. However, some industry analysts say that given the incentives being provided by U.S. states and also Mexico to attract new investment in auto manufacturing, Canada still needs to do more in order to remain competitive in this sector.
