Feds must step up support for innovation in Canada’s auto industry

Since the inception of the automotive industry in Canada, automakers and automotive part suppliers have become global leaders in innovation. Especially following the financial crisis of 2008 and with ongoing NAFTA negotiations, it is clear that our government needs to step up its support of the automotive industry in Canada. Other countries have strategies to grow their sector and innovate; we still do not. The former government provided funding by way of the Automotive Innovation Fund, which involved repayable loans to companies that could afford to benefit from such loans. It was a step in the right direction, but ultimately, did not focus on the immense talent that automotive industry workers could provide. So while the automotive industry in Canada slowly worked itself back, innovation lagged, and opportunities were missed, leaving Canada behind. One can easily argue the workers and quality performance led to the recovery. The current government’s Strategic Innovation Fund combines several former investment initiatives into one large group, making each industry compete for the same funds. This new fund brings together the former Strategic Aerospace and Defence Initiative, Technology Demonstration Program, Automotive Innovation Fund, and Automotive Supplier Innovation Program into one program that the government claims will streamline the funding process. To date, we do not have enough information to see if this will, in fact, make a difference for applicants, nor have we set any target for these investments. A report by Canadian auto czar Ray Tanguay, entitled Drive to Win, was submitted to the Canadian government last month. This vital report highlighted the need for this government to invest further in the automotive industry in Canada via the current Strategic Innovation Fund. Mr. Tanguay studied the important work that this industry provides and suggested tangible ways for the government to help make Canadian automotive research and production number one in the world. He was clear that we have to lead with innovation. Now, it’s up to the Government of Canada to heed this call. We must remember that the automotive industry in Canada is the second-largest manufacturing sector; it provides $18-billion or more to Canada’s GDP. Further, there are 126,900 direct jobs and 401,800 indirect jobs, and it is the largest export sector accounting for 17 per cent of total merchandise exports (95 per cent of which are destined for the United States). In 2016 alone, Statistics Canada revealed that the biggest trade driver between Canada and the United States was the automotive industry. We cannot, nor should we, stand by and let this industry fail, or drift without goals or ambitions. With constantly evolving technologies in the automotive field, in both the manufacturing processes and innovation of products, this presents a new opportunity for automotive manufacturers and our government to work closely together and reprioritize this industry. It is clear that we have the platform for doing this right; we have the people, skills, location, and technologies to innovate and adapt year after year. Now it’s just ensuring that the automotive industry is not lost in this bigger funding plan. For years Canada’s automotive manufacturing industry has been virtually ignored by our government. The message by Prime Minister Justin Trudeau at the epicentre on manufacturing was also discouraging, as manufacturing is not a disappearing or passing industry. Robust artificial intelligence is just one example of new and exciting opportunities for automotive and cross-over industries. It’s time that this government ensures that we are not left behind other automotive nations investing in innovation. The government must make good on its Innovation and Skills Plan commitments, through the Strategic Innovation Fund, and ensure that investments in the automotive sector meet the calls in Drive to Win. Mr. Tanguay was clear that this industry can be a global leader capable of taking Canada to a whole new level if the right investments by this government are made. I agree. The automotive evolution is reaching another pinnacle. Despite a history of accomplishments, we cannot pretend to ignore the reality that a new age is upon Canada, and a new results-based approach is desperately needed. Brian Masse is the MP for Windsor West and NDP innovation, science, and economic development critic. The Hill Times

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Feds must step up support for innovation in Canada’s auto industry

In 2016, the biggest trade driver between Canada and the U.S. was the auto industry. We cannot, nor should we, stand by and let it fail, or drift without goals.

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