“Auto assembly is the engine of Southern Ontario manufacturing and its demand for components creates economic growth right across the country,” said Prime Minister Harper. “Investment in R&D brings long-term benefits to Canada, drives made-in-Canada innovation, increases our ability to compete internationally and creates high-paying and stable jobs.”
The commitments outlined today by GM Canada’s include:
In 2009, the Governments of Canada and Ontario contributed $9.5 billion US in restructuring assistance to GM Canada, in part to avoid the collapse of a much broader system of suppliers, parts companies and R&D in the auto sector. The company committed at that time to making significant capital investments in its Canadian operations over the life of the agreement, already announcing investments totaling $1 billion. GM also committed to investing $850 million US in R&D in Canada from 2009 through 2016. GM Canada’s investment in R&D activities in Canada is one of the tangible benefits being realized by Canadians as a result of the 2009 restructuring support.
Canada’s auto sector is the largest industry within the Canadian manufacturing sector and a key driver of the economy. The auto sector employs hundreds of thousands of Canadians, directly and indirectly, including thousands of auto parts makers.