All-Canadian Concept Car Showcases Canada’s EV Capabilities

The project’s leader, Flavio Volpe, who also heads the Automobile Parts Manufacturing Association (APMA), accompanied the car to an event at Communitech in Kitchener, one of the region’s three urban communities.

We spoke with Flavio about why this was an important stop on its world tour and the impact Project Arrow will have on the future of Canada’s automotive industry. We’ll re-cap the highlights of our conversation in a moment, but first, let’s take a look at the journey that led Project Arrow here.

What is Project Arrow?

Project Arrow is the first all-Canadian, zero-emission electric vehicle (EV) designed, engineered and built exclusively by Canadian suppliers and talent. It’s a sleek, futuristic-looking four-door sedan that stands up to the latest and greatest EVs on the market – while providing a glimpse into how technology could transform the way we drive in the next decade.

When Canada’s automotive sector was challenged to achieve 100% zero-emission vehicle sales by 2035, Flavio answered the call. With funding from the APMA, federal government and provincial governments of Ontario and Quebec, he envisioned the initial concept and invited automotive suppliers and post-secondary institutions from across the country to help bring it to life.

A whopping 534 companies bid to be a part of the project. Out of those companies, 58 made the short list, including 15 from Waterloo. The $20M industrial collaboration, the largest in Canada’s history, came together over the last three years before making its much-anticipated debut at CES in Las Vegas in January.

While Flavio and team have no plans to mass-produce the vehicle in Canada, the goal is to capture the attention of international OEMs looking to expand their operations. It’s still a functioning car – and an impressive one at that, with a 550-horsepower engine, level 3 automation and biometrics-enabled sensors. But more importantly, it’s a platform that shows the strength and promise of Canada’s automotive manufacturing capabilities.

Inventing the future of automotive in Canada

Project Arrow was designed to showcase the future of automotive technology in Canada. “It’s all connected,” said Flavio, referring to the eventual ubiquitousness of cars in our lives – much like the way we interact with mobile phones today – as just another connected device in the Internet-of-Things.

“Connected autonomous fleets are here to stay. People are becoming more willing to give up privacy for convenience and cost advantages, especially younger generations who view cars differently than previous generations,” Flavio said. “This shift presents an opportunity for companies to innovate in the automotive industry.”

Technological advancements in the automotive industry have implications on other industries, too, like healthcare, for example. Flavio gave an example of a driver in distress and how a connected car equipped with biometric technology, like Project Arrow, could detect the driver’s condition and take them to the nearest hospital. Not only that – it could also alert the hospital about the incoming patient and allow them to expedite triage and treatment.

Waterloo is a hub for automotive and tech innovation

Project Arrow returned to Toronto after its debut in January and will make additional stops in Montreal, Detroit and Palo Alto later this summer. Making an appearance in Waterloo was important because, according to Flavio, Waterloo’s automotive ecosystem is key to Canada’s growth in the industry.

“Even in traditional auto manufacturing, it’s a very important region. 15-20% of production volume gets done within a 50km radius from here for two million cars in Ontario, so we would have stopped here anyway,” Flavio shared.

“But more importantly, we want to have a conversation about what a zero-emission, electric vehicle can do for applied technologies in automotive and that’s a wider discussion that has an even bigger home here, and especially at Communitech.”

Waterloo is also home to one of the world’s largest automotive manufacturers, Toyota – which donated parts and expertise to the project – and BlackBerry, makers of QNX, an automotive operating system that’s embedded in 50% of the world’s cars. So, in a way, bringing Project Arrow here is like bringing it home.

President & CEO of Waterloo EDC Tony LaMantia speaks about Project Arrow at Communitech in Kitchener, one of Waterloo’s three urban communities.

Canada’s value proposition to automotive manufacturers and suppliers

Project Arrow was designed to show international automotive manufacturers and suppliers not only what’s possible, but why it’s possible in Canada.

Canada’s appeal to foreign investors goes beyond just infrastructure and tax incentives, according to Flavio, who believes that the country’s talent and industries are the key differentiators.

When speaking with international companies, Flavio uses a layered approach that starts with highlighting Canada’s multi-generational history of manufacturing and the talent emerging from post-secondary institutions.

He then layers on a map of North America’s manufacturing clusters where Ontario is #1. Then a layer that shows globally relevant IT clusters where Ontario is again #1 – and another that shows our competitive traditional capital rates.

Finally, with EV manufacturing enabled by energy storage technology which comes from critical minerals, he shows that Ontario and Quebec are #1 and #2 on the continent.

“This is what surprises people. With the people – in the industry clusters – with the core competencies. It’s hard to build a future that looks better than that.”

Incentives for EV manufacturing

Flavio also discussed the US Inflation Reduction Act (IRA) and how it threatened to put the brakes on the automotive industry in Canada. However, major Canadian manufacturers, along with the provincial and federal government, stood up for the future of the industry and its workforce.

As a result, “Made in America” became “Made in North America” and Canada’s automotive sector will continue to thrive. In addition, a new clean technology manufacturing tax credit was approved by the Canadian government in the last budget, which further incentivizes eligible companies to bring EV production to Canada.