Ontario kicks Automotive Modernization Program into gear

09 October 2019

In September, Ontario's Ministry of Economic Development, Job Creation and Trade announced the launch of the Ontario Automotive Modernization Program (O-AMP) - a $10-million initiative aimed at fostering innovation and efficiency in automotive supply chains.

The three-year program is a major pillar of Ontario's Driving Prosperity program, which was introduced in February with a view to shoring up Ontario's auto sector and protecting jobs therein.



According to a press release, the O-AMP will find the province investing in small- and medium-sized automotive parts suppliers in projects that fall under one or both of the following categories:

  • Technology adoption: This includes advanced manufacturing hardware, software and/or training to improve processes and enhance competitiveness.
  • Lean manufacturing: This includes projects that support training in lean manufacturing practices to minimize waste during the production process and optimize productivity.

O-AMP funding will cover up to 50 per cent of eligible project costs up to $100,000 - with recipient companies expected to contribute the remainder through their own resources.

For businesses to be eligible, they must meet the following criteria:

  • Be a for-profit business (with a business number)
  • Have fewer than 500 employees globally
  • Earn less than $1 billion in global revenues
  • Have at least two years of financial statements
  • At least 50% of the company's total sales revenue must come from the auto supply sector

Larger companies that do not meet these criteria must partner with at least one Ontario-based small- or medium-sized business to be eligible.

Gowling WLG's Automotive Group continues to monitor Ontario's auto sector initiatives carefully. For more information, please contact any member of our team.


NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.

Related   Automotive