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New Center Will Propel Ontario’s Automotive Future


The Ontario government unveiled plans to invest in an Automotive Centre of Excellence in the city of Oshawa as part of the CA $2.5 billion GM Beacon Project.
ONTARIO, CANADA FAST FACTS

Population (2007): 12,803,900

Largest Cities (2006): Toronto, 4,753,120; Ottawa, 860,928; Hamilton, 647,634; Kitchener, 422,514; London, 353,069

Labor force (2006): 6,927,000

Nominal GDP (2006): CA $557.8 billion

Share of Canadian GDP: 39%

Real GDP Growth (2006 est.): 1.3%

Employment Growth: 1.5%

Basic Corporate Tax Rate: 36.12%

Foreign Direct Investment (2006):
CA $448.9 billion

A recently announced Automotive Centre of Excellence in Oshawa, Ontario, Canada will help ensure that the province’s automotive industry continues to thrive. Currently, Ontario’s automotive industry em-ploys over 130,000 people, represents about 20% of the province’s total manufacturing output, and comprises 90% of Canada’s total automotive industry, including all Canadian-built cars and light trucks.

The center is a partnership between the University of Ontario Institute of Technology, GM of Canada, and the government of Ontario. It will be a collaborative environment where students and faculty will work alongside automotive industry professionals to bring new vehicle-related products to market. It will also feature a wind tunnel that can recreate weather and road conditions. Ontario is providing CA $58 million towards the center, which is currently under construction and will open in late 2009.

Oshawa’s new Automotive Centre of Excellence is part of the province’s CA $235 million investment in the CA $2.5 billion GM Beacon Project announced in March 2005 as part of the CA $500 million Ontario Automotive Investment Strategy launched in April 2004. The strategy provides funds for skills training to keep pace with new technologies and processes, innovation and research, improved infrastructure to support new manufacturing techniques, energy efficiencies, and environmental technologies. More than CA $7 billion in new investments and thousands of high-value jobs are the result of this strategy. Large-scale auto projects also offer considerable spin-off benefits for suppliers, the construction industry, and local economic development. Many of the projects also include links with universities, colleges, and research institutions that are helping Ontario remain an important center for the next generation of vehicles.

Projects Supported by the CA $500-Million Ontario Automotive Investment Strategy

• Denso Manufacturing Canada, Guelph (announced September 6, 2007): Provincial support of CA $4.5 million for a total investment of CA $78.2 million towards facility expansion and skills training.

• AGS Automotive and Tiercon, Stoney Creek, Oshawa, Toronto, Cambridge, and Windsor (announced August 28, 2007): Provincial support of CA $6 million for a total investment of CA $62 million for development of bumper systems and expansion of product portfolio.

• Valiant Corporation, Windsor (announced September 21, 2006): Provincial support of CA $7.1 million for a total investment of CA $93 million for the next generation of robotic vehicle assembly systems.

• Honda, Alliston (announced May 17, 2006): New engine facility plus investments to upgrade supporting public infrastructure. Provincial support of CA $15 million for a total investment of CA $154 million.

• Linamar, Guelph (announced May 12, 2006): Creation of a technology center, plus investments in R&D and skills training. Provincial support of CA $44.5 million for a total investment of CA $1.1 billion.

• Nemak, Windsor (announced January 20, 2006): Provincial support of CA $6 million for a total investment of CA $100 million in a new engine block manufacturing process.

• International Truck and Engine Corp., Chatham and Windsor (announced May 16, 2005): Skills training and an R&D center in cooperation with the University of Windsor. Provincial support of CA $32 million for a total investment of CA $270 million.

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