Dr Peter R. Frise

AUTO 21: The little engine that could

By Dr. Peter R. Frise

Achieving a 12-to-one return on an automotive investment? That may sound far-fetched given the recent economic issues the automotive sector has faced. Yet, an estimated 12-to-one ROI is exactly what the AUTO21 Network of Centres of Excellence has delivered to its investors during the last nine years. AUTO21 has leveraged a $5.8-million annual grant from the federal Networks of Centres of Excellence (NCE) program and generated a wealth of benefits for its partners and for all Canadians.

As Canada's automotive research program, AUTO21 funds innovative projects at 46 universities in collaboration with private and public-sector partners. Since 2001, the Government of Canada and more than 300 partners have invested a total of $90.5 million in the network. A recent study of selected AUTO21 projects concludes that the research has generated more than an estimated $1.1 billion in total economic and social benefits.

The study was completed by the globally respected Center for Automotive Research (CAR), an independent automotive think-tank. In its efforts for continuous improvement, AUTO21 not only regularly measures and evaluates the performance of its research projects, but also the management of the network. As the network approaches its 10th anniversary in 2011, members of the board of directors decided it was an excellent time to review the research program. The results are impressive.

More than 60 of the Network's projects were selected for review. Since 2001, AUTO21 research has:

1) Generated an estimated $1.124 billion in total economic and societal benefits:

- $700 million from prevention of life loss, personal injury and property damages;

- $125 million associated with employment and the formation of household income;

- $100 million in industrial process improvements;

- $75 million in fuel savings.

2) 2,200 jobs created or retained annually in Canada, including 600 R&D personnel and 1,600 indirect jobs.

AUTO21's annual federal grant consists of roughly 75% from the Natural Sciences and Engineering Research Council, 20% from the Social Sciences and Engineering Research Council and 5% from the Canadian Institutes of Health Research.

Unlike many automotive research programs, AUTO21 has included vehicle-related health and societal research. Some of the most impressive findings of the CAR study relate to these areas. AUTO21 research has saved an estimated 400 lives, and prevented an estimated 20,000 injuries. More than 70,000 accidents have been prevented. Canadians are traveling safer than ever and it's thanks in part to AUTO21 research. Employees are also working more safely. Research in helping assembly lines become more ergonomically correct has resulted in 50 fewer injury compensation claims, a savings of at least $100,000 to companies and to the provincial healthcare systems.

Canadians are also breathing easier, as AUTO21 research has helped to reduce greenhouse gases. The projects have achieved an estimated reduction of roughly 180,000 metric tons in carbon monoxide, carbon dioxide and nitrogen oxides.

And these estimates are based on just two-thirds of the projects funded by AUTO21 since 2001. It is safe to assume that many of these savings and benefits are even greater if applied to the entire AUTO21 research portfolio.

So, what do these results mean for the future of automotive R&D in Canada? Despite successes, it's no time to rest on our laurels. In 2000, the Government of Canada issued a call for an automotive network to strengthen and advance the quality and quantity of automotive research conducted in Canada. AUTO21 has done this. We have joined together the initial pockets of automotive researchers that were scattered around the country and created a national community of about 200 experts. These researchers have partnered with nearly 300 public and private-sector organizations to help solve issues at the forefront of industry concern. And we've provided unique training experiences to more than 1,600 graduate student researchers, many who have gone on to careers within the Canadian automotive sector, academia and government.

Clearly, automotive R&D is alive and well in Canada. As the sector recovers from the most challenging economic environment since the Great Depression, companies realize that the need to innovate and offer advanced technologies is more vital than ever. Even at the height of the economic downturn, companies recognized this. In 2009, AUTO21 announced funding for 21 new projects. The letters of support that accompanied each project's proposal were written in 2008, prior to the economic downturn. Despite funding being launched at the height of economic uncertainty, only a handful of industry partners were forced to withdraw or reduce their commitments to AUTO21. This is a strong endorsement of the need to continue the work, especially through AUTO21.

Positioning Canada for auto sales recovery

The global automotive sector is recovering and investments are being announced regularly. US auto sales for 2009 were roughly 10 million, and it's expected that 2010 will see sales around 11.5 million. Annual sales from 1999-2007 averaged around 16 million a year. But a recent Globe and Mail article stated that last year was the first year more vehicles were scrapped than sold. People need cars. Society has evolved because of them. And Canada will be on the forefront of offering the advanced knowledge, technology and people that will propel the future of the sector.

As a Network of Centres of Excellence, AUTO21 is currently in the middle of its second seven-year funding cycle. According to NCE guidelines, the current lifespan of an NCE is two funding cycles. As of 2015, AUTO21 will lose its federal support.

The board of directors, concerned industry partners and leading academic researchers are working on ways to prevent the loss of Canada's automotive research program. In nine years, AUTO21 has harnessed a critical mass of brainpower and packaged it in an easily accessible fashion for automotive companies. If AUTO21 has generated these benefits in just under ten years, imagine what a permanent organization could do for generations to come.

Dr Peter R. Frise is scientific director & CEO of AUTO21.