AUTO21 Network of Centres of Excellence Submission to the ...

AUTO21 Network of Centres of ExcellenceSubmission to the Automotive Sub-Committeeof the House Standing Committee onIndustry, Science and TechnologyDr. Peter R. Frise, FCAE, P.Eng.Scientific Director & CEOMarch 11, 2009AUTO21 is hosted by the University of WindsorCentre for Automotive Research & Education401 Sunset AvenueWindsor, ON N9B 3P4

I am not going to speak extensively about the current market difficultiesof the automotive industry except to say that without any doubt, the problemsbeing faced by Canada’s auto sector are being played out around the world inevery automaking country from Asia to Europe.New vehicle sales are down by double-digit percentages virtuallyeverywhere around the world and this is threatening the survival of theautomotive parts and vehicle manufacturers in each of these regions. For thatreason, each of the major countries is providing some form of assistance to itsown auto industry – to ensure that they survive this downturn and are thusable to continue to provide great jobs and generate wealth for the nation inthe future.Canada’s plans to do just that are, therefore an appropriate localresponse to a global issue, without which our economy would suffer seriouslong-term harm. Let me also say that decreased sales caused by the globalcredit crisis have not only hurt the industry on a short-term basis, they havealso occurred at the same time as the industry was in the process of re-toolingfor smaller, lighter and more fuel-efficient vehicles using new technologiesand advanced manufacturing processes. This re-tooling effort was onlypossible through the cashflow generated by strong sales through the late1990’s and up to early last year.The key point is that R&D efforts will not fix the industry in the shorttermnor will they assure the survival of companies presently in difficulties –

that is a consumer credit issue, but they are a crucial part of positioning ourindustry for success in the long term.Thus, as is happening around the world, public-sector researchorganizations such as AUTO21 are even more important than previously toleverage those industry funds that are available and keep the innovationagenda moving ahead in Canada’s largest industry.Innovation & People – the Keys to Future ViabilityDespite the current challenges of the automotive industry, companiesare still investing in new ideas, product concepts, automotive materials andmanufacturing methods. These investments are vital to ensuring thatCanada’s automotive industry remains viable through this period of sharplydiminished sales and as a result of the reduced cashflow in the industry, theinvolvement of public-private sector partnership organizations such asAUTO21 is even more important than before.Each day a dedicated community of Canadian researchers is helpingautomotive companies to take advantage of the opportunities presented bythe current and future market needs to which Canada’s auto sector mustrespond.In addition, the young Canadians who are in school today will needcareers tomorrow and as Canada’s largest manufacturing sector and a keyprovider of high technology jobs, the auto industry will need these brightyoung minds as more senior people end their careers.

Through our industry-driven, industry-supported research program andAUTO21’s dedicated award winning student development and educationprograms the Network has already helped to train more than 1200 engineersand others for great careers at the “idea” end of the automotive sector wherenew products will originate. Our present and future program will help trainthousands more – and this is a vital contribution during a time when jobs arescarce and our best and brightest need to contribute in any way they can.When the market returns to more normal levels, the companies whichhave remained viable, have been able to retain key technical staff membersand have developed new products, processes and methods will be wellpositionedfor success thanks to new technologies and knowledge developedin partnership with Canadian research experts.AUTO21’s Role in the Automotive IndustryAUTO21 is Canada’s national automotive research program, stretchingfrom coast-to-coast with 44 universities, 300 researchers, 500 students andmore than 240 private- and public-sector partners involved.The Network currently supports a wide range of projects investigatingtopics ranging from hybrid and plug-in technologies, to new materials such asbiomaterials for use in vehicle components, to advanced telematics, throughto the challenges facing an aging population dependent on vehicles.Since 2002, AUTO21 researchers have generated more than 90 patents,licences and commercialization agreements for their industry partners. Manyof these new technologies are already providing a direct benefit to Canadians.

The industry’s efforts to make future cars safer, cleaner and moreaffordable have been making great progress for a decade or more and theAUTO21 NCE has been part of these efforts, investing over $84 million infederal and private-sector funding in new innovation (including $46.4M inNCE grant funds since 2001).As a result of these investments, AUTO21 has developed new materials,processes, societal policies and automotive products that have helped toprotect Canadian jobs and improved our quality of life. In this way, theNetwork has become a unique innovation program because the results of theNetwork’s research have more than re-couped the investment made byCanada in the program since 2001.An Example AUTO21 SuccessOne of the most exciting new materials to appear in present and futureautomobile are bio-based plastics and bio-fibre reinforced polymers. The biomaterialsmarket is burgeoning around the world as companies seekalternatives to petroleum-based plastics and their unstable prices.AUTO21 was the first Canadian research organization to support alarge-scale effort in automotive bio materials and this investment has paid-offhandsomely. The project which is led by a University of Toronto forestryprofessor and involved a multi-disciplinary team of researchers at a number ofother schools, was done in collaboration with the Ontario Centres ofExcellence and resulted in a spin-off company that was recognized as one of

in an efficient, responsive industry-led program, the Network has shown whatcan be done by determined people working together without majorinfrastructure investments or large facilities. One of the keys to that success isour requirement that each project has an industry partner who is ready to takethe knowledge from the research teams and commercialize it for Canada.This knowledge pull vs. push approach is very different from other modelsand it has worked very well for Canada because it ensures a pathway to themarket.The Canadian Capability Gap – and Our CompetitionMany Canadian companies lack the sufficient scale for in-house R&Dcapabilities and the few that do possess these abilities are being affected by thecurrent financial squeeze. For that reason, partnerships with public-sectororganizations like AUTO21 are more important than ever.AUTO21’s track record during the last eight years has been stellar,providing an excellent return on investment for both the Government ofCanada and the over 160 private-sector companies that have participated inresearch projects. Other countries recognize an opportunity to move theirdomestic automotive industry forward and are investing in future success, andCanada must continue to do the same. The way to do this is throughinnovative automotive R&D that enhances the viability of Canadiancompanies.As well, many of our competitor countries have well-establishedautomotive research and development programs that are playing an active role

in helping to sustain and grow their domestic industry. Aside from well-knowmodels in Germany, the US and other large countries, one interesting modelof how this can be done quickly and at modest cost is found in Australia. In2005, the Commonwealth of Australia founded their AutoCRC (CooperativeResearch Centre) program based on the AUTO21 model to support theirsmall but active automotive sector, but with a budget substantially larger thanour own. The AutoCRC functions much like AUTO21 using public andprivate sector facilities in flexible partnerships which are fast and responsiveto the needs of each particular project.ConclusionGovernment investment plays a key role in supporting innovation byproviding specialized people and facilities that industry simply doesn’t need allthe time – but can certainly benefit from, on a periodic basis.Those people and facilities are often at universities and so organizationslike AUTO21 which can broker relationships and help to buy-down the riskof R&D can often make the difference between innovations being developedin Canada – or seeing them done in other countries to the benefit ofcompanies and workers there.

AppendixOther Selected AUTO1Success Stories

A New Canadian Product – Making our Police Healthier and SavingHealth Care CostsA great example of targeted research paying off is in an AUTO21project which brought together a national research team led by engineers andhuman kinetics specialists at UBC and Waterloo in partnership with WindsorbasedSchukra of North America to develop a vehicle seat that reduces lowerback injuries amongst Canadian police officers. The police spend longperiods of time sitting in vehicles while wearing cumbersome equipmentstrapped to their waists. This can lead to intense lower back pain. In Ontarioalone, an average of $22 million/year is spent in compensation claims for backinjuries amongst police officers.In pre-market trials with the Windsor police department, the seat wasfound to significantly decrease back discomfort amongst officers. Schukra ismarketing the seat to other police forces across Canada, and as it is adopted,healthcare costs to society should decrease as the injury and rehabilitationrates drop. For Schukra, the project opened the door to a new non-traditionalmarket for its products during a time when traditional markets are slow – andthis will help to keep their Canadian plant running and bring newopportunities to Canadian employees.Keeping Canadian Children Safe in VehiclesA national research team led by a University of Windsor professorcollaborated with Chrysler, Ford, and Transport Canada on a national car seatstudy for children.

Another key partner was Magna International which worked with theresearchers to develop the clek booster seat, the first of its kind to use avehicle’s built-in LATCH seat attachment system to provide additional safetyand protection for Canadian children. The clek has been available at storesnation-wide, with strong sales over the past few years. New seat modelsbased on the original AUTO21 research are now coming onto the market andthe company continues the product development process in concert with theNetwork’s research team.Aside from the pain and suffering caused to children from car crashesand the human tragedy to families is the stark fact that a disabled childrepresents a cost to Canada’s health care system of more than $5 million overtheir lifetime. Thus, preventing even 15 Canadian children from beingcrippled by a car crash will pay for the entire public investment in AUTO21over its 14 year lifespan.Social Science Research – Preventing Car-Related CrimeAUTO21 is extremely proud of the work done by our social science andhumanities researchers to address driver behavioural issues. One of the mostserious forms of vehicle-based crime is auto theft and joy-riding by youngpeople. The city of Winnipeg had the worst auto theft problem in NorthAmerica per capita up until last year. The outcomes of these crimes were alarge number of serious injuries and deaths, substantial property damage,rising insurance rates and large numbers of young people with criminalrecords. An AUTO21 research team of psychologists, sociologists,

criminologists and legal experts worked with the RCMP and the WinnipegPolice Service to develop the Winnipeg Auto Theft Abatement Strategy. TheAttorney General of Manitoba credits this research program with decreasingauto theft in Winnipeg by over 60% in just a few months – and the rate of thiscrime has continued to drop since then.A New Machine Vision System – Improving Quality and ProtectingCanadian JobsFinally, an AUTO21 project in a technique called neuro-fuzzy systemsled to increased efficiency and quality in a Canadian company’s metalstamping and assembly processes. A multi-institution research team led by aprofessor at Queen’s University used these advanced analysis methods to helpVan-Rob Stamping Inc. of Aurora, to develop a new machine-visioninspection machine that is faster, more accurate and more flexible atinspecting the complex sheet metal assemblies produced by the company.This has helped Van-Rob to meet stringent quality requirement fromautomakers and protected Canadian jobs, even during the slow market.