Canadian auto parts innovation program to open in June
$100 million Automotive Supplier Innovation Program (ASIP) designed to support early stage R&D activity.0
TORONTO, ONTARIO — Industry Canada announced that it will begin taking applications for the Automotive Supplier Innovation Program (ASIP) as soon as June 2015.
Outlined in the Economic Action Plan 2015, the fund is expected to provide $100 million over five years and is designed to help auto parts-makers pursue early stage R&D activities such as prototype development, process engineering and product testing. Each company is eligible to receive up to $10 million over the term of the program and will require a minimum of 20 percent from an SME partner.
“Canada’s auto suppliers are among the most competitive in the world today,” Jayson Myers, President and CEO, Canadian Manufacturers & Exporters. “Their future success, however, will depend on their ability to develop and market automotive innovations for customers around the world. The funding that Economic Action Plan 2015 provides for the sector will be critical in helping Canadian suppliers take new technologies from prototype to full commercialization, while expanding their business along the way.”
ASIP complements the existing Automotive Innovation Fund (AIF). Introduced in 2008 and renewed in 2013 (both for $250 million over five years) the program supports Canadian automotive companies for strategic, large-scale projects. In Budget 2014, the Government announced another $500 million over two years for the AIF.
According to ministry, Canada’s auto parts sector represents close to $24 billion in sales annually, contributes $8 billion to Canada’s GDP and employs over 65,000 people.