GM Canada and quebec to develop auto supplier base
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 Qubec's automotive supplier base and leverage the strategic advantage that the...
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 Qubec’s automotive supplier base and leverage the strategic advantage that the province has 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 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. For more information, visit www.sgfqc.com