TORONTO, Ont.--The Canadian Vehicle Manufacturers' Association (CVMA) said it supports the Government of Canada's commitment of an additional $500 million over two years towards innovation and new investments in Canada's auto industry included in Economic Action Plan 2014.
"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," said Mark Nantais, President of the CVMA.
Canada's auto sector is a key driver of the Canadian economy and remains Canada's number two export after energy. Over 85% of the vehicles produced in Canada are exported, with a growing number of vehicles exported outside ofNorth America.
Canada's auto sector is a high-tech industry with the highest job multiplier of any industry, providing up to nine jobs for each automotive assembly job. Over 500,000 Canadians are directly or indirectly employed in communities acrossCanada in related manufacturing and services activities, the association said.
Expanding and simplifying programs like the Automotive Innovation Fund (AIF) was one of the key recommendations of the recent report by the Canadian Automotive Partnership Council, A Call to Action II.
The announcement expands on the government's AIF, which was first announced in 2008 and expanded in 2013.
"The auto sector looks forward to continuing to work with government to develop competitive programs and policies that will ensure that Canada's auto sector remains a globally competitive cornerstone of Canada's economy," said the association release.