General Motors has announced plans to invest $10m (£6.96m) in a Canadian plant as part of an effort to boost driverless technology and cold weather testing. GM will also hire 1,000 new workers in Ontario to focus on research for connected and driverless cars.
Canada, and particularly Ontario, has been promoting its car-making sector as it attempts to compete with Mexico. Canada has been fighting to keep carmakers in the country. Many have been lured to Mexico, where production is cheaper and the cars have the same tariff free access to the US market.Ontario's Premier called the investment a "vote of confidence".
"Our government welcomes this investment, which will help Ontario play a leading role in building the auto industry of the future," said Premier Kathleen Wynne.
As part of this effort, last year Ontario became the first Canadian province to allow road testing of driverless cars.
Over the last five years, carmakers in Ontario produced nearly 15% of all North American vehicles. The investment will be in GM's Kapuskasing plant, which focuses on cold weather technology.
In April, GM purchased land to develop an urban mobility campus to test driverless cars in city driving conditions.