Project Arrow paying dividends for Canadian suppliers

Auto parts makers that equipped Canadian-made technology on the Project Arrow concept vehicle are starting to see a return on their investment, says Flavio Volpe, president of the Automotive Parts Manufacturers’ Association (APMA).

A number of suppliers are already in discussions with car companies for possible new business, Volpe said during a panel discussion at the 2023 Automotive News Canada Congress Feb. 16 in Toronto.

Volpe referred to the global launch of Project Arrow at the Consumer Electronics Show in Las Vegas in January that drew industry executives, including Stellantis CEO Carlos Tavares. “Carlos said, ‘why did you do it?’ So, we can show you the technology. And he said, ‘don’t we already buy from them?’ I said maybe 20. He said, ‘tell me about the other 38.’

At CES, Volpe said he spoke to 14 manufacturers who are now scheduling technology days with many of the suppliers. “If they win business, then that’s the ROI.”

The technology in Arrow is built to model-year 2025 standards, he noted.

Initially, 534 Canadian companies expressed interest in participating in Project Arrow – 150 were new to the APMA’s database. Fifty-eight made the cut – adding technology to the prototype amid a chaotic time with challenges, including a global pandemic, rising steel prices, and Ambassador Bridge blockades in Windsor, Ont., said Volpe.

About 20 of the suppliers were companies that shifted gears and paid out of pocket to make items, such as PPE and ventilators, for Canadians during the pandemic.

“What we had asked from our industry partners was to spend money with no return expectations,” said Volpe. “We had all these people who could have easily dodged it [Project Arrow]. ‘Sorry the world is falling apart. We’ve got our people to worry about,’ but they believed in what we could do and they put their money where their mouth is.”

Colin Dhillon, the APMA’s chief technology officer, said he has recently spoken to two suppliers who are now talking to several global car companies, Tier 1 and Tier 2 suppliers.

One startup has even traveled to Japan to meet Japanese manufacturers, said Dhillon, also a congress panelist. “Because of their technology being in the vehicle they’ve now been able to demonstrate their software,” he said.

The key was building a concrete prototype, said Dhillon. “When you create something that’s functional and you take it to an OEM, the credibility you get and the potential you get of gaining business is greater.”

Instead of a “clay concept,” Arrow is a fully driveable prototype,” said Dhillon. “Because at the end of the day it is a demonstration vehicle. It’s been built to demonstrate all of the companies’ technologies that is on there.”

The vehicle’s launch at CES and subsequent debut at the Canadian International AutoShow marked the start of a two-year tour that will take the Arrow in both concrete and virtual form to different events and auto shows around the world showcasing Canadian-made technology.

“It doesn’t end here,” said Volpe. “We challenge everybody to look at Canada, specifically look at southwestern Ontario and Quebec from a hardware perspective and critical minerals and then software across the country … There’s lots of advantages over Silicon Valley.”

He made bold predictions, pointing to a recent conversation with Francois-Philippe Champagne, Canada’s minister of innovation, science and industry. “Within 10 years, you’re going to see Canadian car companies here, the only thing that’s missing is money. He [Champagne] said, ‘if all that’s missing is money, it’s solvable,’” said Volpe.