Ontario Automotive Modernization Program

Overview of the Ontario Automotive Modernization Program program:

The Ontario Automotive Modernization Program (O-AMP) is a targeted funding initiative from the Government of Ontario, delivered through the Ministry of Economic Development, Job Creation and Trade, to help small- and medium-sized Ontario-based automotive suppliers modernize their operations and improve productivity. The program is designed to enhance the global competitiveness of Ontario’s auto parts sector by supporting technology adoption, process innovation, and lean manufacturing improvements. O-AMP specifically funds projects that help companies integrate advanced manufacturing techniques, digital tools, and data-driven solutions that improve product quality, reduce costs, and streamline operations. Companies can use O-AMP funding to implement Industry 4.0 solutions, such as automation, robotics, cybersecurity systems, AI-based analytics, enterprise resource planning (ERP), and other productivity-boosting technologies. It also supports lean initiatives that improve quality control, production efficiency, and waste reduction. The program operates as a cost-sharing model, with the Ontario government contributing up to 50% of eligible project costs, to a maximum of $150,000. The remaining portion must be covered by the applicant. O-AMP supports a wide range of project types, from upgrading manufacturing systems to supplier quality enhancements and workforce training initiatives directly tied to technology adoption. This program is part of Ontario’s broader automotive strategy, which aims to position the province as a global leader in the transition to connected, autonomous, and electric vehicles.

Benefits of the Ontario Automotive Modernization Program program:

• Helps modernize Ontario-based automotive supply companies
• Improves competitiveness and productivity through technology adoption
• Reduces production costs and increases quality
• Encourages adoption of Industry 4.0 innovations, including robotics and AI
• Supports Ontarios broader auto strategy for electric and autonomous vehicles
• Enables SMEs to compete more effectively in global automotive supply chains
• Stimulates job retention and workforce development through automation support
• Funds key upgrades in cybersecurity, process control, and digital transformation

Eligibility criteria of the Ontario Automotive Modernization Program program:

• To be eligible for O-AMP, applicants must:
• Be a small- or medium-sized enterprise (SME) with:
• Fewer than 500 employees
• Less than $1 billion in global revenues
• Operate a facility in Ontario that manufactures goods for the automotive supply chain
• Be a for-profit business, incorporated and registered in Ontario or Canada
• Demonstrate financial capacity to fund their share of the project (minimum 50%)
• Submit a clearly defined project plan, budget, and expected outcomes
• Provide appropriate business documentation, including:
• Financial statements
• Proof of incorporation
• Detailed project proposal with milestones and timeline
• Projects must be completed within 2 years from the date of funding approval