Automotive Innovation Fund (AIF)

Amount: Up to $75,000,000. Repayable.

The Automotive Innovation Fund (AIF) supports Canada’s environmental agenda in advancing Canadian capabilities in fuel-efficient automotive technologies, greenhouse gas reduction, and clean technologies. Under the AIF, Innovation, Science and Economic Development Canada will consider funding proposals that provide for private sector investment in Canada of more than $75,000,000 until March 31st 2021. Eligible projects will include vehicle and powertrain assembly operations associated with significant automotive innovation and R&D initiatives. Individual proposals will be evaluated based on the strength of the business case, including with respect to R&D and innovation, environmental, as well as economic benefits for Canada.

Eligibility Criteria: Automotive Innovation Fund (AIF)

  • Corporations incorporated pursuant to the laws of Canada
  • Corporations carrying on business in Canada with proposals for private sector investments in Canada valued at more than $75 million over five years, for vehicle or powertrain assembly operations associated with significant automotive innovation and R&D initiatives.
  • Automotive innovation and R&D initiatives other than vehicle or powertrain assembly are also eligible provided they meet the $75 million threshold.

Eligible Costs: Automotive Innovation Fund (AIF)

  • New product development, e.g., advanced emissions technologies, energy efficient engines and transmissions, advanced materials, including engineered plastics, light weight components and materials;
  • Leading edge engineering and design, prototype development;
  • Advanced product testing with a view to ensuring cleaner, more efficient automotive performance and reduced green house gases;
  • Development of new production methods and process technologies, including advanced flexible manufacturing techniques;
  • New or expanded facilities to produce leading-edge and more energy efficient vehicles and powertrains;
  • Substantive investments in new flexible manufacturing processes; and
  • Introduction of other transformative new production technologies to substantially increase productivity and efficiency (e.g., robotics, advanced IT systems, etc.)

Our Focus:

  • Complete the two-phase application process required for acceptance
  • Submit two Statements of Work, articles of incorporation, financial documentation, and a clear justification for why the funds are necessary
  • Work in conjunction with government representatives throughout the application process

Examples of Projects Funded by Automotive Innovation Fund (AIF):

Toyota Motor Manufacturing Canada (TMMC) received a repayable contribution of up to $59,000,000 on July 31st The funding created over 8000 high-quality, well-paying jobs in southwestern Ontario. Toyota Canada invested in a project to use advanced lightweight materials to secure the production of Lexus vehicles. The Cambridge facility is the first in North America to receive these upgrades. The plant adopted new laser-welding robots to produce faster and better welds which enhance vehicle rigidity, and through extension, handling.

Linamar Corporation received a repayable contribution of up to $50,700,000 from Automotive Innovation Fund (AIF) on January 12th 2015. Linamar, a major manufacturer of automotive components, invested in a project to produce fuel-efficient powertrain components for next-generation transmissions in southwestern Ontario. The project resulted in numerous economic benefits to Canada including the creation and retention of high-quality, well-paying jobs, opportunities for R&D, and increased activity within the Canadian automotive supply chain.