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$145-million investment by the Canadian government: an Auto123.com Reaction

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Luc-Olivier Chamberland
The Harper government is assuming a more flexible position towards the automotive industry. The earmarking of 145 million dollars for Automotive Partnership Canada will enhance research and development activities and create jobs in the high-tech sector.

Researching new technologies is vital to the sustainability and development of the automotive industry in general, not just in Canada. The funds provided are relatively modest in the current climate, where the industry as a whole is rethinking the swiftness with which manufacturers can introduce existing technologies on production models in the short term, such as the Chevrolet Volt, for instance.

With this in mind, it can be decades before research results become reality and a new technology is launched in a production model. And add to that the development costs of new technologies that in several cases exceed the government's 145 million.

We must also consider the fact that the future of GM and Chrysler, American automakers, will remain uncertain for the next few weeks. The government has not made any announcements concerning a partnership with any automaker. Manufacturers might never be able to apply the new technologies developed through Automotive Partnership Canada.

In light of the bureaucratic red tape typical of government agencies, the number of players and the limited funds, the Canadian government will have to increase its contribution if it is to ensure the success and viability of its program.


Reaction for the press release:
Canadian Governement to invest $145 million in automotive industry
Luc-Olivier Chamberland
Luc-Olivier Chamberland
Automotive expert
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