The Ontario government is providing up to $85.8m ($66.5m) in funding to Fiat Chrysler Automobiles Canada (FCA Canada) for an expansion of the automaker's minivan assembly plant in Windsor.
The funding will support improved research at the automotive research and development centre (ARDC), workforce training at the Windsor Assembly Plant (WAP) and technology enhancements to WAP for manufacturing of the new Chrysler Pacifica Hybrid.
The ARDC, which was opened in 1996, plays a key role in the product development of nearly all vehicles manufactured by FCA.
Currently, the ARDC employs 180 people and covers 93,000 square metres in its Windsor facility near WAP.
Apart from design and engineering, the ARDC works with several universities in Ontario to undertake research on advance powertrains and light-weighting.
FCA claims that the new Chrysler Pacifica hybrid plug-in model will have a range of about 30 miles (48 kilometeres) solely on electric power with zero-emissions.
Premier of Ontario, Kathleen Wynne said: "It's no surprise that Fiat Chrysler chose Ontario for the production of its first-ever minivans using plug-in hybrid technology.
"Ontario is a global leader in the auto sector, with competitive business costs, a highly skilled workforce and a commitment to sustainable innovation.
"We will continue to work with the auto industry, including our partners in Detroit, to support and encourage investment, employment and innovation in the industry."
FCA Canada President and CEO Reid Bigland said: "In the last 18 months, FCA has invested in excess of $2 billion and added over 1,200 new jobs for the benefit of our Canadian operations.
"We are grateful for the support of the Ontario government and appreciate our strong working relationship."
FCA Canada directly employs more than 11,000 people across Ontario at several of its facilities