Automotive News Canada - January 2017 - 4

* JANUARY 2017

Auto industry
wins $500 million
through 2021
Auto Innovation Fund updated to give
non-repayable grants instead of loans
toward technology, plant longevity,
environmental concerns and jobs
By GREG LAYSON
ONLINE EDITOR

other zero-emission vehicle technologies.
* Secure existing facilities into
the future, which means investments
necessary to secure globally significant mandates (immediately or in the
future) that will serve to anchor facilities over the longer term (10 or more
years).
* Grow Canada's automotive footprint, including the establishment
of greenfield or expanded manufacturing or R&D facilities that will significantly contribute to innovation,
job creation and global value chain
opportunities.

CANADA NOW HAS A
government-funded incentive program available to the automotive industry to help it better compete with Mexico and the Southern
United States at enticing auto investment, says Canada's auto czar Ray
Tanguay.
The federal Liberal government
on Jan. 9 implemented changes to the
Automotive Innovation Fund (AIF)
that now allows automakers, suppliers and automotive research-and-development companies to draw condiINCENTIVES TO RETOOL
tional government grants - that do
"I think our incentives for the
not require repayment - on a pool of
green fields are OK compared to
about $500 milMexico,"
lion that's availTanguay said.
able through
"Yes, some
2021.
of the United
Under the
States still have
previous AIF
very generrules, developed
ous incentives.
by the federal
But I think our
Conservatives,
incentives are
the money was
better."
available as
That's
interest-free
because while
Ray
Tanguay
says
that
the
federal
repayable
some states
government is finally listening to the
loans.
offer huge
industry
about
competitive
subsidies.
"This is a
incentives for
government
new facilities,
that is finally listening to many,
few offer help to automakers wanting
many years of requests. In order to
to retool, Tanguay said.
be competitive, we have to have an
"We're helping to upgrade faciliAIF that is not an interest-free loan,
ties. Continued improvement is more
it has to be a grant," Tanguay told
valuable. It's something unique in
Automotive News Canada. "I know in
terms of government assistance."
hearing from the entire industry that
Honda was the first manufacturit's something we all asked for."
er to cash in on the new terms of
the AIF. On Jan. 9, it announced a
ATTRACTING NEW INVESTMENT
$492-million upgrade to its Alliston,
Tanguay, whose official title
Ont., operations. The federal governis Automotive Advisor to the
ment will kick in $41.8 million in the
Governments of Ontario and Canada,
form of a conditional grant.
is a former chairman and CEO
Tanguay said conditions of these
of Toyota Motor Manufacturing
grants "will remain behind closed
Canada. He's tasked, in part, with
doors."
drumming up new investment in the
"But we'll have a return on our
Canadian auto industry and helping
investment," he said, implying the
the two governments develop policy
auto industry's footprint won't
that makes the country attractive to
shrink and jobs will be secure.
automakers and their suppliers.
Unifor, Canada's largest union
"It's fantastic for me," Tanguay
in the private sector, represents
said Jan. 10 at the Automotive
more than 40,000 hourly workers in
News World Congress in Detroit's
the auto industry, including 23,000
Renaissance Center. "How can I sell
employed by the Detroit Three. It's
if I don't have product?"
celebrating the changes.
A non-repayable grant from the
The union secured $1.6 billion
AIF "must be strategically significant worth of total investment from the
in nature," the federal government
Detroit Three during contract negotisays on its website.
ations last fall.
The money must be used to:
"It is good to see Ottawa and the
* Leverage advanced technologies,
province recognizing the imporincluding lightweight and other new
tance of the auto industry to provide
material formulations or processing
much-needed good jobs and investtechniques; connected and autonoment in our communities," Unifor
mous vehicle technologies; and vehiNational President Jerry Dias said
cle software and hardware and more.
in a statement. "All levels of govern* Invest in clean technologies,
ment must work together to show
including fuel cell and fuel storage
leadership and support for the auto
systems, vehicle electrification and
industry." - ANC

Honda will spend much of the $492 million on a new state-of-the-art paint shop
to reduce greenhouse-gas emissions.

Honda plant upgrades
secure 4,000 jobs
Canadian, Ontario
governments will
chip in $41.8 million
each while Honda
will cover the rest of
the $492 million
By GREG LAYSON
ONLINE EDITOR

HONDA WILL SPEND
nearly $500 million to
upgrade its Alliston, Ont.,
assembly operations where
it builds the Honda Civic
and CR-V.
The automaker will
spend up to $408.3 million
while the Canadian and
Ontario governments will
each give Honda conditional grants worth $41.8 million apiece. It's not known
what those conditions are.
Honda will design and
build of a new state-of-theart paint shop intended
to reduce greenhouse-gas
emissions from the paint
process by 44 per cent, the
Government of Ontario said
in a news release.
Some of the money

will be spent on
our manufacturing facilresearch-and-development
ities and make innovato support production of
tive upgrades possible,"
future vehicles and assemChenkin said in a statebly technologies,
ment.
including light"As a result of
weight materials
these upgrades,
and advanced mateHonda Canada
rial bonding techManufacturing
niques. Neither
will continue to
Honda nor the govprovide thouernments said if the
sands of well-paynew vehicle moding, high quality
els would evenjobs in Alliston and
Honda
tually be built in
throughout Canada."
Canada
Alliston.
The upgrades will
CEO Jerry
Premier
secure 4,000 direct
Chenkin.
Kathleen Wynne
jobs in Alliston,
and Ontario
Chenkin said.
Finance Minister Brad
"Technology and innoDuguid met with Honda
vation never stand still, so
executives, including
it's essential that Ontario's
Honda Canada CEO Jerry
auto sector remains globChenkin, at the company's
ally competitive. Honda is
headquarters in Tokyo as
a cornerstone of our secpart of a business mission
tor, accounting for about 17
to Japan and South Korea
per cent of Ontario's vehiin November 2016.
cle output," Duguid said.
"With this partnership,
SECURING 4,000 JOBS
the company and provincial and federal governIn supporting the automents are joining forces to
maker's plans, the Ontario
ensure that Honda's skilled
and federal governments
Alliston team remains a
are helping create an envileader in building the vehironment that "will allow
cles of tomorrow." - ANC
us to further modernize

A Challenger to Canadian winters
By BILL McLAUCHLAN
TORONTO CORRESPONDENT

FCA CANADA IS MAKING
all-weather driving easier
by adding all-wheel-drive to
the Dodge Challenger lineup.
According to Windsor,
Ont., injury lawyer Greg
Monforton, nearly 30 per
cent of Canadian crashes occur on snowy or icy
roads. So the foul-weath-

er facility of FCA Canada's
new 2017 Challenger GT
AWD model gives performance enthusiasts a way to
cope with winter.
It also gives the Dodge
nameplate a solid chance
for a better grip on the muscle car segment and gain
some sales traction at the
expense of Ford's Mustang
and the Chevrolet Camaro,

both available in rear-drive
only.
Powered by a 305-horsepower 3.6-litre V-6, the
Challenger GT AWD uses
the all-wheel-drive system
from the four-door Charger.
The Callenger starts at
$38,545.
Production at FCA's
Bramalea, Ont., plant began
in January 2017 with availability in dealerships before
the winter snows stop flying - ANC

Table of Contents for the Digital Edition of Automotive News Canada - January 2017