The Ontario government and Ottawa are providing nearly $101 million in funding to help Canada's second-biggest auto-parts maker – Linamar Corp. – create 1,200 research jobs at its southwestern Ontario headquarters and Ontario plants.

Premier Kathleen Wynne and federal Transport Minister Lisa Raitt jointly announced today the governments are partnering with Linamar on its $507-million investment that will produce the next generation of auto transmissions.

Ontario's contribution of just under $50.3 million is coming from the province's new Jobs and Prosperity Fund, set up in the 2014 budget and recently activated. Ottawa is providing $50.7 million to the project as a repayable contribution from the federal Automotive Innovation Fund.

The governments said the Linamar investment would create 1,200 new high-quality jobs over the next decade and the company will maintain a minimum of 6,870 jobs at its Ontario plants.

After touring Linamar's head office and main plant in Guelph today, Wynne said the government investment would help develop the skilled advanced manufacturing workforce needed for Ontario companies to be competitive globally.

"This is a place that really can show how manufacturing and training can work for the province and country," she told a news conference.

"Our advantage in Ontario is our skilled workforce."

Linamar is a global auto-parts manufacturer based in Guelph that has about 19,000 workers at 45 plants in North America, Europe and Asia, which supply the world's major carmakers with precision components such as transmissions, gears and engine parts.

The company – which ranks behind Magna among Canada's biggest parts makers – said the new investment will help develop and produce components for the next generation of fuel-efficient cars and capture a growing share of the North American automotive market.

CEO Linda Hasenfratz, one of Canada's highest-profile female CEOs, welcomed the federal and Ontario government investments in the new research project.

"Our Canadian plants are our company's most productive globally thanks to a talented, skilled workforce with an amazing work ethic and a dedication to process and product innovation," she said.

"That combination of innovation and efficiency is what makes us competitive on a global scale. It is critical for our governments to create a competitive environment for companies to invest. They certainly have done so today with this funding."

Raitt said "Canada is a great place to build cars" and "has much to offer automakers and parts manufacturers: Our Automotive Innovation Fund, the new Windsor-Detroit bridge, support for automotive R&D, a stable economy, a low corporate income tax rate, a highly skilled and productive workforce."

Though Ontario's auto sector is smaller than it was a decade ago, it is still a pivotal part of the provincial economy. The province is among the top vehicle producers in North America and is home to five major global automotive assemblers– Chrysler, Ford, General Motors, Honda and Toyota – which operate plants from Oshawa and Oakville to Brampton, Woodstock, Alliston and Windsor.

Province, Ottawa give $101 million to Linamar to create 1,200 new research jobs

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