Ontario News Release: Ontario Expanding Partnership with Auto Industry to Boost Supply Chain Competitiveness

Mississauga Board of Trade
Mississauga Board of Trade


December 7, 2021


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Ontario Expanding Partnership with Auto Industry to Boost Supply Chain Competitiveness

Province supporting innovative projects to help build cars of the future

December 07, 2021
Ministry of Economic Development, Job Creation and Trade

VAUGHAN — The Ontario government is investing an additional $12 million in auto parts companies through the next phase of 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 since the launch of O-AMP in 2019 has leveraged $22.2 million in industry investments.

O-AMP is a centrepiece of the recently launched Phase 2 of Driving Prosperity: The Future of Ontario’s Automotive Sector. The next phase of the 10-year plan will help Ontario’s auto sector pivot to producing the automotive technologies of the future, including the next generation of electric vehicles and the electric batteries those vehicles need. Phase 2 positions Ontario as a North American leader in developing and building the vehicle of the future through emerging technologies and advanced manufacturing processes.

“By helping Ontario-based companies grow in the globally competitive auto parts industry, O-AMP plays an integral part in the next phase of Driving Prosperity ― The Future of Ontario’s Automotive Sector,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “The auto and manufacturing sectors are cornerstones of Ontario’s economy, providing good jobs for local families and workers. Through O-AMP, our government is creating the right economic climate to encourage investment, innovation and growth.”

The relaunched O-AMP program is helping small and medium-sized automotive parts suppliers make Ontario a world-leader of the future of auto manufacturing. The program will help make suppliers better, stronger and faster by investing in technology adoption and/or training in lean manufacturing. More than 100 projects are either underway or completed under the program, and they are expected to create about 613 new jobs.

Examples of O-AMP projects from previous O-AMP rounds include:

Molded Precision Components The company, based in Shanty Bay, develops, designs, prototypes, manufactures and markets high-precision plastic injection molding tools and products. Molded Precision Components purchased and integrated a 3D Computer Tomography (CT) scanner with its current system to measure and validate the parts it produces. The company is now able to do this faster, increasing its overall productivity and efficiency. O-AMP funding of $100,000 was matched by an investment by Molded Precision Components of $120,738. The project assisted Molded Precision Components to add 62 new jobs.

APAG Electronik Corp. Located in Windsor, the company specializes in the design, development and production of concept lighting, electronic control units, assembled printed circuit boards (PCBs) and finished components for the automotive industry. APAG Electronik purchased a Quick Vision Measuring Machine and its related software and training to move weekly subcontracted inspections in-house, saving the company about $70,000 per year in production costs. O-AMP funding of $80,614 was matched by an investment by APAG Electronik of $80,616. The project helped the company add 24 jobs.

“Productivity is the great facilitator in today’s advanced technology world,” said Flavio Volpe, President of the Automotive Parts Manufacturers’ Association. “Make more things with better prepared people and processes – that is the proposition of O-AMP and we are very happy to partner with the Ontario government in delivering this program.”


Quick Facts

  • Learn how to receive support when you introduce new technology or lean manufacturing to your auto parts business. O-AMP applications must be submitted by 4:59 p.m. on January 4, 2022.
  • O-AMP supports manufacturing technology adoption, tools and technologies for new product development and/or adoption of lean manufacturing practices. Funding covers up to 50 per cent of eligible project costs up to $150,000, with recipient companies contributing the remainder.
  • 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). This network will build on successful elements of the Autonomous Vehicle Innovation Network (AVIN).
  • Ontario is the only place in North America with five major automakers building vehicles — Stellantis, Ford, General Motors, Honda and Toyota — as well as truck manufacturer Hino.
  • The province’s vehicle assembly facilities are supported by a supply chain comprised of more than 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 (CAV) technologies.
  • In North America, Ontario ranks as the number two auto producer (after Michigan) and the number two Information Technology cluster (after California).

Additional Resources

Ontario Automotive Modernization Program (O-AMP)

Driving Prosperity ― The Future of Ontario’s Automotive Sector

O-AMP projects supported under intake rounds 1 and 2

2021 Ontario Economic Outlook and Fiscal Review: Build Ontario

Ontario’s auto industry

Information and advice to help your business navigate the economy during COVID-19


Media Contacts

Rebecca Bozzato
Minister Fedeli’s Office

Kwok Wong
Communications Branch

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