As it continues to address the impacts of COVID-19, the Government of Canada is laying the groundwork for a green recovery that will create new jobs, grow the middle class, cut pollution and build a cleaner future for everyone.

“As we continue to safely restart our economy, it is important to do so in a strategic way and with a long-term vision. One of the ways to achieve this is by helping Canada and businesses here at home become world leaders in the manufacture of green transportation vehicles. Nova Bus is a vital part of this journey toward electrification and a future marked by sustainable growth, dependable jobs and global leadership. Our government will continue to support businesses to ensure they can participate in the efforts toward a clean growth economy, including by investing in sustainable public transit and zero-emission vehicles.”
– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

“We are very proud to partner with the Canadian government in order to contribute to the innovative zero‑emission vehicle manufacturing sector and help Canada to achieve its sustainability and greener economy targets.”
– Martin Lundstedt, CEO, Volvo Group

“We are thrilled to continue to invest in the modernization of our facilities and to integrate new technological processes to produce buses that meet the needs of our customers and transit users.”
– Ralph Acs, Senior Vice-President, Business Region Americas and President of Nova Bus

• This investment to support the $184.8-million Nova Bus Transformation Project is delivering on the Government of Canada’s strengthened climate plan, A Healthy Environment and a Healthy Economy. The government is increasing support for cleaner transportation to help achieve our economic and environmental goals. 

• The investment announced today is being made through the Strategic Innovation Fund.

• The Nova Bus Transformation Project is delivering on the Pan-Canadian Framework on Clean Growth and Climate Change, in which the Government of Canada committed to carrying out an ambitious national strategy to transition to a clean growth economy, including through investments in public transit to put more zero-emission vehicles on the road.

• This investment complements the government’s announcement of $2.75 billion in funding over five years, starting in 2021, to enhance public transit systems and switch them to cleaner electrical power, including supporting the purchase of zero-emission public transit and school buses.

• To create jobs and support the growth of clean technology manufacturing in Canada, Budget 2021 proposes to reduce—by 50%—the general corporate and small business income tax rates for businesses that manufacture zero-emission technologies. The reductions would go into effect on January 1, 2022, and would be gradually phased out starting January 1, 2029, and eliminated by January 1, 2032.

• Nova Bus is a division of the Volvo Group, which is a multinational manufacturer of medium and heavy-duty vehicles, as well as industrial equipment. The Volvo Group has approximately 100,000 employees in 18 countries. Its Canadian headquarters is located in Saint-Eustache, Quebec.

• Through this project, Volvo Group Canada Inc. has committed to spending a minimum of $330 million on research and development.

Associated links

• Volvo Group Canada Inc.
• Pan-Canadian Framework on Clean Growth and Climate Change
• Strengthened Climate Plan: A Healthy Environment and a Healthy Economy
• Budget 2021: A Recovery Plan for Jobs, Growth, and Resilience
• Strategic Innovation Fund
• Nova Bus

John Power
A/Director of Communications
Office of the Minister of Innovation, Science and Industry
john.power@canada.ca

Media Relations
Innovation, Science and Economic Development Canada
ic.mediarelations-mediasrelations.ic@canada.ca

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