Automotive Supplier Competitiveness Improvement Program Eligibility

Please Note: ASCIP’s final application intake has closed. Ontario automotive manufacturers should explore the Ontario Automotive Modernization Program (OAMP) for funding support.

The Automotive Supplier Competitiveness Improvement Program (ASCIP) is an Ontario government funding program that provides automotive manufacturers with grants for equipment and software upgrades. Targeted towards tier two and three automotive suppliers, it offsets a portion of costs related to improving product lifecycle management and creating new operational efficiencies.

With ASCIP funding, companies may receive up to 50% of qualified costs to a maximum of $100,000 in Ontario automotive supplier grants.

Eligible organizations must be a manufacturer with operations in Ontario and derive at least 50% of revenues from the automotive industry. Other eligibility criteria apply; continue reading this article to explore whether your company, project, and expenses are a good fit for the program.

What is the Automotive Supplier Competitiveness Improvement Program?

Since 2016, the Automotive Supplier Competitiveness Improvement Program (ASCIP) has provided tier two and tier three automotive parts manufacturers with funding to invest in advanced equipment and software. By accessing the program, automotive suppliers can reduce the cost of productivity and continuous improvement upgrades and become more globally competitive.

Eligible applicants may receive up to $100,000 in Ontario government funding per application. Companies can apply multiple times but can only access ASCIP funding once.

To apply for ASCIP funding, automotive suppliers must wait for one of the program’s scheduled intake dates and complete a two-stage application process that includes an application and presentation to the program’s review panel.

For a more detailed look at how the Automotive Supplier Competitiveness Improvement Program works, please review Mentor Works’ overview article.

Business Eligibility: ASCIP Automotive Manufacturing Grants

To qualify for Automotive Supplier Competitiveness Improvement Program funding, applicants must:

• Operate and manufacture products in Ontario;
• Be an incorporated business;
• Have fewer than 500 employees or less than $1 billion in global annual revenue; and
• Generate a minimum 50% of revenue from the automotive sector.

Applicants Ineligible for ASCIP Funding

ASCIP funding is not a viable government funding option for:

• Businesses without Ontario operations;
• Companies that do not manufacture products;
• Large, often tier one, automotive manufacturers; and
• Companies that do not operate within or generate fewer than 50% of revenues from the automotive sector.

Project Eligibility: ASCIP Automotive Competitiveness Grants Ontario

Automotive Supplier Competitiveness Improvement Program grants support advancements to product lifecycle management through software and hardware adoption. Projects that fall under this area are then assessed based on their ability to:

• Deliver shorter design cycle times;
• Optimize energy consumption;
• Be more productive and more responsive to changes; and
• Take advantage of new business opportunities.

Projects Ineligible for ASCIP Funding

Projects that focus on improving operational efficiency and competitiveness exclusively through employee training programs is not eligible. For training support, consider using the Canada-Ontario Job Grant (COJG).

Expense Eligibility: ASCIP Ontario Government Grants

The Automotive Supplier Competitiveness Improvement Program reimburses up to 50% of eligible project expenses, including:

• Hardware and software implementation costs;
• Labour directly involved in the project;
• Direct materials required for the project;
• Prototyping costs, including materials, configuration, and testing;
• Web-based information development and maintenance costs; and
• Travel expenses (if applicable).

Expenses Ineligible for ASCIP Funding

Some expenses not eligible for ASCIP funding include:

• Recurring, non-project-related expenses;
• Research and development costs;
• Utility costs; and
• Meals and incidentals, such as entertainment expenses.

Apply for ASCIP Automotive Manufacturing Grants

To get started with ASCIP funding, automotive manufacturers should confirm their eligibility and develop a budget that outlines all expected project costs. Based on this budget, it becomes easier to ascertain the best way to apply; companies proposing projects with a funding ask of less than $50,000 have a less-intensive application process, while companies seeking up to $100,000 have a lengthier application process.

Contact Mentor Works to confirm your business’ eligibility for ASCIP and discover how to optimize the government funding application process.

Posted: November 29, 2016 by Katlynd Poulton. Updated: August 2, 2018 by Jeff Shepherd.