Canada to infuse C$500 million into Auto Fund to entice investment from Chrysler

Article by Anita Panait, on February 14, 2014

Canada will boost its Automotive Innovation Fund by C$500 million (US$453 million) over two years as part of its attempt to entice investment from Chrysler and other carmaker as its local auto industry staggers from global competition and dropping output. The amount is on top of the C$316 million ($284 million) invested in six projects since 2008.

The fund provides repayable contributions to carmakers for large-scale research and development projects and has already gained private-sector investments of up to C$2.3 billion ($2.1 billion), according to budget documents released by Finance Minister Jim Flaherty. The increased funding comes as Chrysler is reported to be mulling investing at least C$2.3 billion ($2.1 billion) for its Windsor minivan site in Ontario. The carmaker is reported to have asked the federal and Ontario governments for subsidies.

"The government and Ontario are actively engaged in discussions with Chrysler," remarked Jayson Myers, chief executive officer of Canadian Manufacturers and Exporters. "This is a signal the federal government has money to bring to the table." Chrysler is seeking for contributions of at least 20 percent, or C$460 million ($414 million), from the federal and Ontario governments to upgrade the minivan site and for new research and development, the National Post said in its report last week. 

 The new funding "will support private sector investment in the long-term competitiveness of the Canadian automotive sector and create and sustain jobs and economic growth," the government said in its budget.  The federal and Ontario governments are the second-largest shareholders in General Motors, with a stake valued at around C$3.84 billion ($3.5 billion).

If you liked the article, share on:

Topics: canada, chrysler

Comments

Recommended

We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
The other day, it was confirmed that Volvo will finally bring the XC40 to US soil, where it will first make an appearance at the 2017 Los Angeles Auto Show....
by - November 23, 2017
There is no question that the new BMW M5 (F90) high performance sports sedan is more powerful, faster and more enticing than the previous model. But for interested customers in...
by - November 23, 2017
Following the Tesla Roadster’s electrifying revelation on Thursday, Musk’s highly ambitious goals have skyrocketed when he tweeted about his future plans for the new sports car. Well, kind of. The...
by - November 23, 2017
Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries