Nabeel A Khan
Key words: Ontario, automobile, light weighting, car innovation, canada-India
I am Ontario, you can hate me or love me, but
definitely, cannot ignore me. The message goes emphatically for the Indian automotive industry when it is set out in the quest of
sustainable mobility. Ontario, Canada, the leading destination for innovation
and manufacturing for the western market, is eagerly willing to take the
bilateral trade ties with India, especially in the field of automobile, to the
next level, Counsellor (Commercial – Ontario), head of the Ontario
International Marketing Centre in India,
Aaron Rosland said in an interview.
According to a recent study
conducted by Boston Consulting Group, Canada is in the top tier of countries when
it comes to innovation in manufacturing –ahead of the U.K., Germany and France.
Since 2004, Ontario has produced more vehicles than any other state or province
in North America thanks to its dedicated workers, state of the art technology
and innovation. The province's auto industry supports nearly 4 lakh jobs and
contributes about USD20 billion to the economy annually.
Ontario is unique with five of the top
vehicle makers (GM, Ford, Chrysler, Toyota, Honda) operating plant here. With
the race for green leadership well underway, carmakers worldwide are looking
for that all important edge that will put them ahead of the competition. Ontario has had a successful auto industry
for more than a century and it developed expertise in key areas of green auto
research and production including: advanced lightweight materials and coatings,
advanced manufacturing processes, alternative fuels and powertrain components
and systems.
“Recent investments and new product mandates
are testament to the ongoing strength of Ontario's auto sector and the quality
of our auto workers. The Ontario government will continue working with the
industry to create good jobs for Ontario families and help position the sector
for long-term growth and innovation,” Minister of Economic Development and
Innovation, Brad Duguid stated.
According
to KPMG, a global network of professional firms providing audit,
advisory and tax services provider, 2010 Competitive Alternatives report,
automotive manufacturing costs are lower in Ontario than in the U.S., the U.K.,
France, Italy, Germany, the Netherlands or Japan.
Ontario government is also
cutting business taxes as part of a fundamental shift in tax policy covering
capital, sales and income taxes. There are no capital taxes on businesses
operating in Ontario. The marginal effective tax rate (METR) on new capital
investments (provincial and federal combined) has fallen to 18.6 percent in
2010 from 32.8 percent in 2009 and will continue to drop, reaching 16.2 percent by 2018.
“The R&D tax incentive program is very
attractive in the region as compared to anywhere else. Suppose, according to
global standards a spend of USD100 in R&D expenditures can be reduced to
less than USD45 – and less than USD37 for small businesses. In Ontario, a
broader range of costs qualify for deductions than in many jurisdictions. Tax
credits can also be carried back for three years, or forward for 20 years,”
Aaron Rosland added.
For automotive research Ontario
offers access to a number of world-leading researchers. It has 30 auto-focused
public research facilities, including the Waterloo Centre for Automotive
Research, the McMaster Institute for Automotive Research and Technology and the
Centre for Advanced Nanotechnology. Organizations such as AUTO21 and the Centre
of Excellence for Materials and Manufacturing work hand-in-hand with
manufacturers to accelerate the commercialization of ground-breaking
discoveries developed at our public research labs. For the logistic benefit the
main industry is concentrated along a 420-kilometre (260-mile) corridor that
stretches from the Windsor-Detroit border to Oshawa. It’s home to 12 assembly
plants operated by five of the world’s major automakers and over 300 parts
manufacturers and more than 87,000 highly skilled and productive workers.
There’s also plenty of available
serviced land, transportation system that’s constantly being upgraded and a
government that supports green auto initiatives. The auto corridor also offers
access to the North American market.
“We have a flexible approach to intellectual
property that makes it possible for companies to acquire the rights to the IP
developed at our public research centres,” Aaron Rosland maintained. Yet,
everything is not as rosy; in the recent time there has been a number closure
of plants in the region due to workers’ strike over wage cut and many other
reasons. This event is expected to hit the industrial economy in Ontario hard
and cut another around 1,700 spinoff jobs linked to the locomotive factories.
The manufacturing economy in the region has also been affected in recent years
from the restructuring of the North American auto sector. However, Aaron
Rosland insisted that there is enough virtue in the region to sustain its
importance for the auto industry.
Key words: Ontario, automobile, light weighting, car innovation, canada-India
