Mr. Speaker, as the government, we are incredibly disappointed and concerned by the announcement today from General Motors to shut down its facility in Oshawa. My heart goes out to the women and men whose jobs will be affected along with their families and their communities, as well as everybody in the supply chain who is affected by decisions like these when they occur.
As a member of another community with deep ties to the automotive sector, I can understand the feelings of workers, families and the community in Oshawa today. The Oshawa assembly supports thousands of high-paying, good middle-class jobs, and we want the people of Oshawa and all Canadians to know that we are committed not only to them but also to ensuring the economic growth, strength and diversification of the Canadian economy. Canada has a strong and proud automotive history stretching back more than 100 years and that proud legacy continues today, employing over 500,000 people, directly and indirectly. It contributes $18 billion to our GDP and is the country's largest export industry.
Coming from Guelph with the automotive supplier Linamar, I can speak to the importance of automotive suppliers and the impact of the network of suppliers that support all the plants impacted by GM's announcement today, regardless of which side of the border or, in fact, where in the world they are located. Canada's automotive supply sector is a major employer in Canada, accounting for approximately 130,900 jobs and contributing $9.7 billion to Canada's GDP, and more than 90% of our suppliers in Canada are SMEs. Therefore, decisions like this have a ripple effect throughout our economy.
Our government recognizes the importance of this sector, especially suppliers. That is why, through the strategic innovation fund, a $2-billion program, the government has provided funding to support innovative projects in the automotive sector, including the automotive suppliers that are adding value and providing innovation within this sector. For example, we provided $49 million to help Linamar Corporation launch a new innovation centre in my town and my riding of Guelph. It is dedicated entirely to research and development. It is going to create 1,500 new jobs and maintain another 8,000 jobs in Guelph.
Additionally, through the strategic innovation fund, we also provided $110 million for Toyota Motor Manufacturing Canada in Cambridge that will help to retain 8,000 jobs there, create 450 new jobs and provide 1,000 more co-op placements, making Toyota's Canadian plants the largest producer of Toyota hybrid vehicles in North America. These investments are a testament to the strength of Canada's automotive sector and speak to the quality and skill of our highly educated and efficient workforce. On days like this, we need encouragement and we need to see where Canada really stands in this key sector. It really stands with the talent of the people who operate and work within the assembly plants and in the feeder plants going onto the line.
Canada continues to be home to the world-renowned experts working in many of the technical areas that are contributing to automotive innovation, and really redefining the car of the future, including cybersecurity, battery and fuel-cell technology, ICT, sensors, lightweight materials and alternate powertrains. Industry 4.0 is alive in Canada. This makes Canada an ideal place to do automotive R and D, and I know that this strong tradition is going to continue and in fact is going to grow forward from here.
In addition to the strategic innovation fund, our government recently put in place measures to ensure that our automotive and manufacturing industries remain competitive in the global economy. We are committed to enhancing confidence in Canada by supporting Canadian businesses as they grow, expand into new markets, and create additional good, well-paying jobs.
The fall economic statement implemented several measures to ensure that Canada continues to innovate in the face of international developments and increasing competition. These measures will allow businesses to immediately write off the cost of machinery and equipment used for the manufacturing or processing of goods, as well as write off the full cost of specific clean-energy equipment.
The fall economic statement also introduced the accelerated investment incentive, an accelerated capital cost allowance for businesses of all sizes, across all sectors of the economy that are making special capital investments. It will help to encourage investment in Canada, providing a timely boost to investor confidence and ensuring that Canada remains competitive in the global market going forward. There is a path forward. These measures are in addition to previously announced initiatives that will strengthen Canada's economy and ensure that Canada remains a place that can develop the car of the future.
Our world-class talent, and leading institutions and researchers make Canada an ideal place for cutting-edge R & D, not only in the automotive sector but across all disciplines, including agriculture, looking at bioproducts, and what can come from the farm to the factory floor. Our budget in 2018 made a significant $925-million investment in fundamental research through the granting councils, which is one way our government is committed to R & D and our world-leading researchers and institutions. This investment will ensure that Canada builds upon its incredible reputation for talent and skills, making Canada the place to develop the car of the future. From alternative fuel research in British Columbia to lithium-ion battery research in Nova Scotia, Canada's automotive R & D stretches from coast to coast to coast. I know that I speak for all Canadians and my constituents when I say the people of Oshawa have the support of those across the country and they will lead us on the path to the future.
Further, our government has committed to strengthening our free trade agreements and opening global markets for business. We are committed to diversifying our economic exports to the Asia-Pacific region and Europe, as well as developing new markets in services, digital products, health technology and e-commerce. We will continue to promote Canada abroad as a world-leading destination for investors and businesses. To do this, we launched Invest in Canada, an organization dedicated to attracting global investment and simplifying the process for businesses to invest in Canada. Paired with our major investments in R & D, our competitive funding support programs and our recent announcements in the fall economic statement, our government has positioned Canada to take advantage of a rapidly changing global landscape, and to be the location of choice to build the car of the future.
While we are devastated by today's announcement, all Canadians, and especially those in Oshawa, should know that our government is considering every option to ensure that those affected by today's decision will be supported.
Canada has a long and proud automotive history. We will continue to ensure that rapidly changing industry continues to call Canada home. The measures being taken by our government that I have outlined will increase our economic prosperity and increase opportunity for well-paying quality jobs, not only in Oshawa but right across our great country.