Feds lending Linamar $51M to develop next-gen transmissions
Ontario government also chipping in with $50.25-million grant as company develops fuel-efficient transmissions
GUELPH, Ont.—The federal and provincial governments are providing Linamar Corp. with more than $100 million to help the Guelph, Ont.-based automotive supplier produce next-generation transmissions.
Announced by Ontario Premier Kathleen Wynne and federal Transportation Minister Lisa Raitt, the $50.7-million loan from Ottawa, provided through the Automotive Innovation Fund (AIF), and the $500.25-million grant from the province will help the company launch a new program to develop fuel-efficient automotive transmissions at its operations in southwestern Ontario.
The money will help create as many as 1,200 jobs and maintain nearly 7,000 existing positions at Linamar’s Ontario facilities, according to Industry Canada.
“Canada is a great place to build cars,” Raitt said in a statement released by Industry Canada. “Canada has much to offer automakers and parts manufacturers.”
Raitt noted the AIF, low corporate taxes, and a new cross-border bridge connecting Detroit and Windsor, Ont., as some of the main benefits to the country’s auto sector.
“We are thrilled with the support shown by both the Ontario and federal governments through this investment in our Ontario plants,” Linamar chief executive Linda Hasenfratz said in the Industry Canada statement.
“Our Canadian plants are our company’s most productive globally thanks to a talented, skilled workforce with an amazing work ethic and a dedication to process and product innovation. That combination of innovation and efficiency is what makes us competitive on a global scale. It is critical for our governments to create a competitive environment for companies to invest. They certainly have done so today with this funding.”
The combined funding from the federal and provincial governments represents about 20 per cent of Linamar’s total investment of $507 million, according to Industry Canada.