Big Investment To Position Ontario As Hub For Building Cars Of The Future

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Inside the modern manufacturing facility at Listowel Technology. Pic: Listowel

Toronto: In a major boost to the Automotive Parts manufacturing sector, the Ontario government will be investing $10 million in auto parts companies through the Ontario Automotive Modernization Program (O-AMP) to boost competitiveness and position Ontario as a North American hub for building the car of the future.

Funding awarded so far will leverage $25.8 million in industry investments.

“The strength, innovation and quality of our automotive supply chain has been essential in attracting almost $6 billion in new vehicle assembly investments to Ontario,” said Vic Fedeli, Minister of Economic Development,

Job Creation and Trade. “O-AMP provides targeted support to help auto parts manufacturers make critical investments in technology and training to enable them to keep ahead in a globally competitive industry.”

O-AMP was launched in September 2019 as a centrepiece of Driving Prosperity: The Future of Ontario’s Automotive Sector, the government’s plan for a strong and sustainable auto industry.

More than 100 projects are either underway or in the pipeline and will create about 570 jobs. Examples of O-AMP projects and how they add value include:

Global Plas Inc., Concord
The company makes interior, exterior and under-the-hood plastic components used in the auto industry. Global Plas invested in new injection molding technology and an automation system that increases efficiency while reducing wastage costs, enabling the company to expand its business.

O-AMP funding of $87,210 was matched by an investment by Global Plas of $105,957. The
project has assisted Global Plas to add 36 new jobs.

Kinto Canada Ltd., Windsor

The company makes connectors and fixtures (including electric vehicles), electric locomotives, renewable energy and power transmission. Kinto Canada invested in technology to automate and digitize some of the company’s machining and grinding processes.

The upgrades helped to reduce lead times for customers, increase productivity and reduce materials wastage. O-AMP funding of $100,000 was matched by an investment by Kinto Canada of $141,607, helping to retain eight jobs.

Listowel Technology, Inc., Listowel
The company produces plastic molded parts for the Honda Civic and CRV. Listowel Technology invested in advanced production technology using lean manufacturing processes to secure additional work building the centre panel for the 2022 Honda Civic program. O-AMP funding of $100,000 was matched by an investment by Listowel Technology of $441,334. The project create 28 new jobs.

“The Canadian and Ontario auto industries have a generation-defining opportunity to lead in the design, engineering and manufacture of modern vehicle technologies — zero emissions, light-weight, connected and autonomous,” said Flavio Volpe, President of the Automotive Parts Manufacturers Association.

Ontario’s 2021 Budget announced further support for the auto sector by investing $56.4 million over the next four years to create the Ontario Vehicle Innovation Network (OVIN).

OVIN will build on successful elements of the Autonomous Vehicle Innovation Network (AVIN), accelerating the development of next-generation electric, connected and autonomous vehicle and mobility technologies, as well as supporting Ontario’s role as the manufacturing hub of Canada.

• Ontario is the only place in North America with five major automakers building vehicles —
Stellantis, Ford, General Motors, Honda, Toyota — as well as truck manufacturer Hino.

• The province’s vehicle assembly facilities are supported by a supply chain comprising over 700 parts firms and over 500 tool, die and mold makers.

• More than 300 Ontario companies and organizations are active in the development of connected and autonomous vehicle (C/AV) technologies.

• In North America, Ontario ranks as the #2 auto producer (after Michigan) and the #2 Information Technology (IT) cluster (after California).

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