In 2008 the federal government introduced the Automotive Innovation Fund (AIF), providing $250 million over five years to support strategic, large scale research and development projects in the automotive sector that support innovative, greener and more fuel efficient vehicles. In 2016, changes were made to provide both payable and non-repayable contributions, expanding the list of eligibility costs to include land and buildings, and increase the maximum amount of contribution from $250 million to $500 million for greenfield investments.
The AIF will support Canada’s environmental agenda in advancing Canadian capabilities in fuel-efficient automotive technologies, greenhouse gas reduction and clean technologies. It demonstrates the government’s commitment to implementing Canada’s Science and Technology (S&T) Strategy in an automotive context. The AIF also provides an important complement to the Government’s agenda to support industry competitiveness, outlined in a plan called Advantage Canada: Building a Strong Economy for Canadians.