Ontario kicks Automotive Modernization Program into gear

3 minute read
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.


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