The Government of Canada has announced an additional $500m commitment over two years for innovation and new investments in Canada's auto industry included in Economic Action Plan 2014.
This latest announcement expands on the government's Automotive Innovation Fund (AIF), which was first announced in 2008 and expanded in 2013.
The Canadian auto sector will continue to work with the government to develop competitive programs and policies in the future in order to ensure that Canada's auto sector remains a globally competitive cornerstone of Canada's economy.
This decision by the government was appreciated by the Canadian Vehicle Manufacturers' Association (CVMA).
CVMA president Mark Nantais said that this announcement demonstrates the government's continued recognition of the importance of the auto sector to Canada's economy and the need to remain globally competitive.
"The economic value that the automotive industry delivers has long been recognized and many jurisdictions go to great lengths to attract and retain automotive investments," Nantais added.
The auto sector is one of the key drivers of the Canadian economy and is number two in Canada's exports, with 85% of the vehicles produced in Canada are exported. It has the highest job multiplier of any industry, providing up to nine jobs for each automotive assembly job.
