Tech minds and manufacturing muscles make Canada an ideal environment for mobility companies

Michigan and Ontario represent the two largest automotive manufacturing markets in North America. While Michigan continues to make more vehicles, Canada's strengths in technology, workforce and business make Ontario the best place for mobility companies to move forward in this increasingly tech-driven world. And that includes American auto brands.

Today, Ontario has the distinction of serving as the Canadian headquarters for five global OEMs—Fiat Chrysler Automobiles, Ford, General Motors, Honda and Toyota. Together, these companies assemble more than two million vehicles each year at their Canadian plants.

They are supplied by an ecosystem of approximately 700 parts suppliers across the country and a talent base with expertise in areas such as robotics, reinforcement learning, computer vision, cyber security and automotive software.

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Interestingly, there is no Canadian car manufacturer for all Canadian activity in this area. Still, the country, and Ontario in particular, remains the choice of tech-forward American mobility brands. This is because it is in the unique position of being the only jurisdiction in North America with strong automotive manufacturing expertise and five innovation superclusters.

As a result, several US automotive players are investing beyond their Canadian manufacturing plants by opening AI and advanced automotive software R&D centers in Canada:

Uber announced plans to invest $200 million in its Toronto facility, where it will expand its self-driving vehicle hub.

Ford committed to invest $500 million in 2017 to build its R&D center in Ottawa, and has since announced that an additional $380 million will go to its operations in Ottawa, Waterloo and Oakville.

On the outskirts of Toronto, General Motors established an R&D facility focused on autonomous driving software. And in May, it announced it would develop 55 acres of track for engineers to develop advanced new vehicle systems at Oshawa Assembly Plant assets.

US companies setting up shop in Canada draw closer to the innovation and action of top local players in the ancillary industries, including Ottawa-based BlackBerry QNX and Canada's second largest auto parts maker, Linamar. QNX is now embedding its software into more than 150 million next-generation vehicles for customers such as Ford, GM and Hyundai, and Linamar recently partnered with the Canadian government to leverage the Innovation Superclusters program. As a result, Linamar is expected to invest $500 million, including opening an innovation center in Ontario's Advanced Manufacturing Cluster.

EVS and AVS . setup for success

While Canada is one of the few countries in the world with vast natural reserves of minerals that go directly into the manufacture of lithium-ion batteries for electric vehicles, it also boasts a federal tax incentive program that allows Canadians of all sizes. allows businesses to encourage All areas for doing R&D in Canada: SR&ED Tax Credit.

Plus several Canadian research and innovation centers and strong R&D partnerships between academia and industry, and you can see Tesla open an R&D center at Nova to tap into the cutting edge research being done in the battery sector. Why choose Scotia?

As the industry moves away from fuel-based models, more and more companies are starting to build hybrid or electric vehicles at their Canadian assembly plants. Toyota, which makes its RAV4 hybrid in the Toronto area, just reported that sales of its electric vehicles rose 56 percent over the past year. And Chrysler now builds the world's first hybrid minivan, the Pacifica, in Canada.

Global producers also move to Canada due to the abundance and quality of STEM talent emerging from universities such as the University of Toronto, which ranks among the top 20 global universities, and the University of Waterloo, whose graduates are the second most frequently hired by Silicon. Huh. . are doing. Valley Companies. According to Statistics Canada, Ontario alone produces more than 40,000 STEM graduates annually.

In addition, Canada's lower cost compared to the US complements mobility companies' efforts to advance in areas such as connected vehicles and shared infrastructure. At a time when it is projected that there will be 2.4 million vacancies in the automotive industry in the US by 2028, consider this: Ontario's availability of skilled workers in the automotive industry makes it one of the best destinations with over 100,000 direct jobs manufactures. makes a. Thousands more byproduct jobs in communities across the province.