GM Canada, the Québec Government and the SGF will work together to develop auto supplier base in Quebec
Montréal, February 28, 2003 - General Motors of Canada, the Government of Québec and the Société générale de financement du Québec (SGF) signed an agreement today that lays the foundation to develop the Québec automotive supplier base and leverage the strategic advantage that Québec enjoys in lightweight materials.
Michael Grimaldi, President of General Motors of Canada said, “Today, GM sources $800 million annually from suppliers in Québec, substantially more than any other auto manufacturer. The agreement we signed today with the Government of Québec establishes a plan to expand the capability of existing Québec based suppliers, develop the potential of new suppliers and attract new companies to Québec.”
GM has set a target of allocating an additional $400 million in new GM contracts to current or future suppliers over the next five years. In addition, GM has committed to engage Québec universities and research institutions in a $10 million research and development program over the next five years to enhance its knowledge and capabilities in lightweight materials applications.
“The agreement signed today by the Government of Québec is completely aligned with our full employment strategy and it contributes to the value placed on leading-edge sectors. As we wish to have a solid automotive industry in Québec, the Government of Québec has given itself the objective of securing up to $400 million in new contracts for Québec suppliers from principals other than GM. Cumulatively, these efforts could increase the annual purchases of parts and sub-systems from $1.6 to $2.4 billion,” declared the Deputy Premier of Québec, Mrs. Pauline Marois.
“To reach these goals and develop the Québec supplier base, we will allocate up to $280 million in the form of financial aid either through existing or new programmes. On another note, we are also committing ourselves to sustaining the research and development of products, up to a $10 million ceiling, such that the capacity of lightweight-material production in Québec may be increased,” added Mrs. Lucie Papineau, Minister-Delegate of Industry and Commerce.
“This agreement highlights Québec’s competitive edge in lightweight materials by accelerating the development of new Québec suppliers in the automotive sector and thereby increasing the opportunities for other suppliers to set up business across the province,” added the Deputy Premier.
“The SGF will create a wholly-owned subsidiary, the Québec Auto Partnership (QAP Inc.), which will fall under the responsibility of its SGF Transport division. The QAP will act as a one-stop-shop, coordinating the various investment projects in the automotive sector and will facilitate access to principals. It will ensure that all of Québec’s applicable advantages and programmes are fully leveraged and that the projects truly meet the needs of the automotive industry. SGF will continue to realise its objectives and will be able to participate in the equity financing of suppliers so that they may establish themselves or expand their business in Québec based on a solid foundation,” declared Mr. Éric Hubar Meunier, Vice-President of the SGF.
GM will identify companies in Québec that have the potential to supply them at automotive volumes, at competitive cost, quality, technology and delivery. Where appropriate GM will help suppliers create a specific plan for their development and link them with the government to identify where support from a government institution would enhance their competitiveness. These activities will be managed by a dedicated GM Manager of Québec Supplier Development who will create a comprehensive supplier development plan for GM in Québec. GM will also dedicate a Manager of Québec R & D who will be responsible for working with the Québec research institutions on the lightweight materials research activities.
“We are pleased to be working with the Government of Québec to do our share, but Quebec suppliers will be much stronger if they have a portfolio of business with other OEM’s. Accordingly, we support the Government of Québec in its efforts to reach out to other auto manufacturers to engage them in the Québec Auto Partnership and help to develop Québec’s auto supply industry,” said Grimaldi.
Headquartered in Oshawa Ontario, General Motors of Canada employs 25,000 people nationwide. GM of Canada manufactures a variety of vehicles, engines, transmissions and other components, and markets the full range of General Motors’ vehicles and related services through 803 dealerships and retailers across Canada. Vehicles sold through this network include Chevrolet, Oldsmobile, Pontiac, Buick, GMC, Cadillac, Hummer, Saturn, Saab and Isuzu. More information about GM of Canada can be found at media.gmcanada.com.
The mission of Société générale de financement du Québec is to carry out economic development projects in cooperation with various partners and under normal profitability conditions. Since its restructuring in 1998, SGF has generated 10,6 billion in investments and created 56,000 direct and indirect jobs. As of December 31, 2001, SGF’s consolidated assets exceeded $3 billion. SGF includes 65 international partners operating various establishments in Quebec. (sgfqc.com)
- 30 -