Ottawa to renew $250-million auto industry fund
In Oakville Friday, Prime Minister Stephen Harper will reportedly announce Ottawa is setting aside $250 million for car companies & their suppliers.
The Globe & Mail says Harper will renew the 5-year Automotive Innovation Fund.
The fund, set up in 2008, required companies to invest their own money to access government cash.
Government sources have said the fund helped generate $1.6-billion of research-&-development & innovation projects.
The federal & Ontario governments chipped in $10.6-billion to bailout General Motors during the 2009 recession, when the company restructured under court protection.
The 5-year renewal comes amid a controversy over government assistance to the auto industry, after GM of Canada said in late December it is shifting production of the Chevrolet Camaro from
Oshawa to Michigan in 2015.
Government sources say Ottawa is renewing the fund to help the auto-manufacturing sector remain competitive & protect close to 500,000 direct & spinoff jobs.