ANNOUNCEMENT 12 Jan 2015

In January 2015, the government of Canada announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 12 Jan 2015 | Removal date: open ended

State loan

On January 12, 2015, Transport Minister Lisa Raitt announced a repayable contribution of up to $50.7 million through the Automotive Innovation Fund (AIF) to Linamar Corporation, a major manufacturer of automotive components. The funding will support a project bringing new technologies to Canada and creating jobs in southwestern Ontario. Linamar is investing in a project to produce fuel-efficient powertrain components for next-generation transmissions. The firm will invest over $500 million. The original authorization for the AIF dates back to the Canadian federal budget for 2008, which provided $250 million over five years to support automotive firms' strategic, large-scale research and development (R&D) projects. The original authorization for the program thus predated the mandate of the Global Trade Alert, but it was then renewed on January 4, 2013 with an additional $250 million over the next five years. On February 11, 2014, the Government of Canada announced a further $500 million over two years. Under the AIF, Innovation, Science and Economic Development Canada considers funding proposals that provide for private sector investment in Canada of more than $75 million over five years. Eligible projects include vehicle and powertrain assembly operations associated with significant automotive innovation and R&D initiatives. Among the criteria on which proposals are assessed are their contribution to the long-term economic benefit to Canada, including significant job creation/retention and their potential to attract further investments to foster Canadian competitiveness.

AFFECTED SECTORS