Government of Canada Announces $200 Million for Innovative GM Beacon Project

OSHAWA, Ontario, March 2, 2005 — The Honourable Joe Volpe, Minister of Citizenship and Immigration, on behalf of the Honourable David L. Emerson, Minister of Industry, today announced that the Government of Canada is making a contribution of $200 million toward the innovative Beacon Project being undertaken by General Motors of Canada (GM Canada). "Today's investment will help Canada remain at the forefront of the automotive sector, and secures the future of the site and related employment for years to come," said Minister Volpe. "I am pleased that both levels of government and the private sector continue to work together to invest in the future of a well-trained, highly skilled workforce. This investment represents the second investment made to fulfill a commitment announced last June." "As Canada's largest manufacturing sector, the auto industry is a key driver of the Canadian economy. We are pleased to be partnering with GM and the Government of Ontario to support this important project, which will bring benefits in terms of investment in research and development, innovation, engineering and educational elements, and new environmental technologies," said Minister Emerson. The Beacon Project represents a major investment for Canada. GM is investing more than $2.5 billion in the project, representing the largest and most comprehensive automotive investment in Canadian history. The Beacon Project involves three of GM Canada's manufacturing facilities as well as its Canadian Engineering Centre. Additionally, the Beacon Project will establish a university-based Automotive Innovation Network, designed to work with a number of university partners on automotive research and development, and to help address the "commercialization gap" in Canada. The project will introduce state-of-the-art flexible manufacturing capabilities as well as the development and integration of environmental technologies. The project includes an investment in state-of-the-art equipment for an all-new Oshawa Car Assembly Plant paint facility, which will provide significant environmental benefits. GM is currently the only automaker designing and engineering vehicles that are manufactured in Canada, and this project will serve to enhance its current leadership position in this area. The new investment will also add new jobs, including high-skill engineering positions, and invest in skills upgrading and training programs. The Government of Canada's contribution to GM is part of a larger commitment to the entire automotive industry. In addition, the government continues to work on the development of the Automotive Strategic Framework, which will outline a vision of Canada's automotive sector through the year 2020, and examine the key competitive issues impacting its long-term growth, including skills development, research and development, infrastructure, regulatory harmonization, trade, sustainable development and investment. This framework will build on the Canadian Automotive Partnership Council report, A Call for Action: A Canadian Auto Strategy, which was released November 3, 2004. The Government of Canada contribution, which is conditionally repayable, will support areas of the project related to innovative process technologies, environmental research and advanced engineering. The government will also work with GM on its Canadian supplier development initiatives. New automotive assembly investments are coveted worldwide for the significant economic and technological spinoffs they generate. The Canadian automotive assembly industry has tremendous direct and indirect economic impact across the country, creating large employment opportunities in related areas. For more information, please contact: Stéphanie Leblanc Office of the Honourable David L. Emerson Minister of Industry (613) 995-9001 Stephen Heckbert Director of Communications Office of the Honourable Joe Volpe Minister of Citizenship and Immigration (819) 994-2482 Peter Graham Director of Communications Office of the Honourable Joe Fontana Minister of Labour and Housing (613) 953-5646 Alan Toulin Director of Communications Office of the Honourable Tony Valeri Leader of the Government in the House of Commons (613) 994-2482 Mike Haines Office of the Honourable Walt Lastewka Member of Parliament for St. Catharines (905) 934-6767 Media Relations Industry Canada (613) 943-2502 Media Relations Citizenship and Immigration Canada (613) 952-0740