General Motors is making a $2.5-billion investment in its Canadian operations with $425 million in assistance from the federal and Ontario governments. Under the banner of the Beacon Project, the investment — the largest in Canadian automotive history — has major R&D and skills training components and establishes a Canadian Automotive Innovation Network of universities and research institutes (see chart).

Ontario is providing the largest amount of assistance at $235 million with its $500-million Automotive Investment Strategy fund, while Ottawa is committing $200 million in repayable contributions, presumably through Technology Partnerships Canada.

The Innovation Network will channel investment in new research projects, design chairs and research chairs at participating universities, and include in-kind donations of computer-based design tools for skills training.

GM is spreading its innovation-related funding across five general areas and four Ontario cities — St Catharines, Ingersoll, Oshawa and Hamilton. In addition to the Innovation Network, investments will be made in new vehicle programs, enhanced vehicle engineering activities, flex manufacturing and environmental technologies, and employment and skills training.

OSHAWA GETS MAJORITY OF INVESTMENT

In Oshawa, the Univ of Ontario Institute of Technology will be home to a new Automotive Centre of Excellence (ACE), which will act as an anchor to the Innovation Network. ACE will focus on automotive innovation, R&D and engineering by linking automotive firms, suppliers, universities, researchers and students.

The largest portion of GM’s investment will take place in Oshawa at its existing vehicle assembly facilities. Nearly $1.1 billion will go towards new vehicle mandates for the Impala and Monte Carlo Models using flexible manufacturing processes and technologies. A further $582 million will be invested in a new paint facility, introducing a number of new environmental technologies. And finally, $132 million is being invested in the GM Canadian Engineering Centre. The Centre will support GM’s global vehicle development processes, its fuel cell R&D initiatives and a new virtual product development visualization centre.

In Hamilton, GM is building on its long-standing relationship with McMaster Univ with the creation of two automotive engineering centres. The Centres are part of a commitment valued at more than $60 million and includes an in-kind contribution of computer-based design tools. The funding will help establish a GM of Canada Centre for Engineering Design and a GM of Canada Centre for Corrosion Engineering Research.

In St Catharines, GM is investing $23 million to further development of a new displacement-on-demand (DOD) V-8 engine at its powertrain plant. The DOD engine is designed to conserve fuel by using half of the engine’s cylinders during most normal driving conditions. The DOD funding builds on a $116-million investment GM has made at the St Catharines facility for a new six-speed, front-wheel drive automatic transmission.

In Ingersoll, GM is investing $557 million in new plant operations and vehicle engineering in support of the new Pontiac Torrent compact SUV. The project is being undertaken in conjunction with CAMI Automotive, a joint venture between GM Canada and Suzuki Motor Corp. GM and CAMI will also establish apprenticeship and internship programs as part of the Career Bridge program, an Ontario program geared towards new Canadians.

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