MRO Magazine

GM Canada and Qubec work to develop auto supplier base

Montreal, QC -- General Motors of Canada, the Government of Qubec and the Socit gnrale de financement du Qube...


March 24, 2004
By MRO Magazine

Montreal, QC — General Motors of Canada, the Government of Qubec and the Socit gnrale de financement du Qubec (SGF) have signed an agreement that lays the foundation to develop the Qubec automotive supplier base and leverage the strategic advantage that Qubec enjoys in lightweight materials.

Michael Grimaldi, president of Oshawa, Ont., based GM, said the company sources $800 million annually from suppliers in Qubec, substantially more than any other auto manufacturer. “The agreement we signed … with the Government of Qubec establishes a plan to expand the capability of existing Qubec based suppliers, develop the potential of new suppliers and attract new companies to Qubec,” he said.

GM has set a target of allocating an additional $400 million in new GM contracts to current or future suppliers over the next five years. In addition, GM has committed to engage Qubec universities and research institutions in a $10 million research and development program over the next five years to enhance its knowledge and capabilities in lightweight materials applications.

Quebec will allocate up to $280 million in the form of financial aid either through existing or new programs. “On another note, we are also committing ourselves to sustaining the research and development of products, up to a $10 million ceiling, such that the capacity of lightweight-material production in Qubec may be increased,” said Mrs. Lucie Papineau, Minister-Delegate of Industry and Commerce.


The SGF will create a wholly-owned subsidiary, the Qubec Auto Partnership (QAP Inc.), which will fall under the responsibility of its SGF Transport division. The QAP will act as a one-stop-shop, coordinating the various investment projects in the automotive sector and will facilitate access to principals.

GM will identify companies in Qubec that have the potential to supply it with automotive volumes, at competitive cost, quality, technology and delivery. Where appropriate GM will help suppliers create a specific plan for their development and link them with the government to identify where support from a government institution would enhance their competitiveness.

“We are pleased to be working with the Government of Qubec to do our share, but Quebec suppliers will be much stronger if they have a portfolio of business with other OEM’s. Accordingly, we support the Government of Qubec in its efforts to reach out to other auto manufacturers to engage them in the Qubec Auto Partnership and help to develop Qubec’s auto supply industry,” said Grimaldi.

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