The Canadian Ministry of Innovation, Science and Economic Development, announced an investment of $41.8 million over three years in Honda of Canada Manufacturing. The Government of Ontario is also contributing $41.8 million in support of a total project investment of $492 million.
The government investments will maintain Canadian jobs by supporting advanced and clean technologies per the various government agencies. The investment will allow Honda's plants in Alliston, Ontario, to secure their global competitiveness. Honda of Canada employs more than 4,000 contracted and full-time associates, and it produced more than 385,000 Civic and CR-V models and 221,000 engines in 2015.
The ministry's funding is provided through the Automotive Innovation Fund (AIF), which was extended to 2020–21 in Budget 2016 and which in some situations includes the option of recipients receiving contributions without the expectation of repayment. The AIF provides support for strategic research and development projects that lead to greener, more fuel-efficient vehicles.
The automotive industry is the country's second largest manufacturing sector, producing more than 2 million vehicles per year and directly employs over half a million Canadians with an impact of six jobs in other related and service sectors.