Ontario and the federal government have partnered to give over $100M in funding to Linamar to manufacture new automotive parts.

The funding will help create 1,200 new full time jobs at the Guelph, Ont., plant with a focus on creating new, more environmentally friendly transmissions, said Minister of Transportation Lisa Raitt during a press conference Monday.

“Canada really is a great place to build cars and our government is serious about supporting this industry," said Raitt.

The funding will be complimented by an internal investment from Linamar of $400 million.

The company's CEO Linda Hasenfratz said the investment will go into a variety of programs, including research and development, and the purchase of new equipment.

Hasenfratz said in addition to transmissions, Linamar would be investing in automotive engines and drive lines as well.

“Being innovative, staying a step ahead is how we win business,” she said.

The federal government said it will provide $50.7 million in a repayable loan to Linamar through its Automotive Innovation Fund, while the province has pledged up to $50.25 million to the company in a one-time grant.

Ontario's Premier Kathleen Wynne said she was proud to be supporting the Guelph auto-parts maker, adding that Linamar is part of the province's success story, using a skilled workforce as an advantage.

"By partnering with companies like Linamar, we are positioning the province for growth now, and for years to come," she said.

Currently, Linamar employs 19,000 people at 45 plants worldwide. Of those, 8,300 people work at the company's Guelph, Ont., plant, the company said. That number will jump to about 9,500 people by 2025 as the company implements the new funding and starts creating 1,200 new jobs in Guelph.

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