This article is sponsored by LeddarTech and was written, edited, and published in alignment with our Emerj sponsored content guidelines. Learn more about our thought leadership and content creation services on our Emerj Media Services page.

One of the long-standing promises of automatic driving systems is the amount of time saved for drivers, often touted as a potentially society-changing development in human history. Besides creating $3-400 billion in revenue, according to McKinsey, autonomous vehicles (AVs) could help drivers get back 50 minutes of their lives back every day. 

Of course, autonomous driving systems will need to prove themselves in the marketplace first before humanity reaches this point. Emerj CEO and Head of Research Daniel Faggella hosted a webinar titled “Investing in the Future of Automotive Tech in Canada” featuring Canada-based automotive LeddarTech automotive software company President and CEO Frantz Saintellemy alongside President of the Canadian Automotive Parts Manufacturers’ Association. Both distinguished speakers are members of the Order of Canada. 

In the first part of our coverage, we highlighted featured commentary from the panelists on the current state and prospects of automotive technology in Canada, including AI applications, investment opportunities, and emerging trends. In the webinar’s second half that we examine in today’s article, the trio’s discussion focuses on how the Canadian automotive industry drives innovation in safety for ADAS systems through collaboration. 

This article analyzes actionable insights from their exchange for Canadian investors and automotive leaders in two critical areas:

• Harness cross-industry collaboration for innovation: Engaging with diverse industries to drive groundbreaking advancements in the automotive sector, including reducing vehicle weight and costs and enhancing the driving experience.
• Prioritize long-term investment strategies: Embracing bold, generational decision-making to foster an ecosystem that supports sustainable growth in Canada’s automotive industry, moving beyond short-term political agendas.

Guest: Flavio Volpe, President of the APMA, Canada

Expertise: Strategy, Policy, Leadership

Brief Recognition: Flavio Volpe is a prominent figure in the Canadian automotive industry. He serves as the President of the Automotive Parts Manufacturers’ Association (APMA) in Toronto, Ontario. He is a recipient of the Order of Canada. He also holds a Master’s Degree in Business Administration from the Schulich School of Business at York University and a Bachelor’s Degree in International Relations from the University of Toronto.

Guest: Frantz Saintellemy, CEO & President of LeddarTech

Expertise: Electronics, Manufacturing, Renewable Energy

Brief Recognition: Frantz Saintellemy is President and CEO of LeddarTech Inc. Saintellemy holds a Master’s of Business Administration from McGill HEC University, a Bachelor’s Degree in Electrical Engineering from Northeastern University, and a Bachelor of Science from HEC Montreal. He is also a recipient of the Order of Canada. 

Harness Cross-Industry Collaboration for Innovation

Starting off the second half of the webinar, Frantz begins by highlighting the massive transformation of the industry, especially with electrification and autonomy. These shifts require billions of dollars in investments across combustion, hybrid, electrification, and driver assistance technologies. He emphasizes that large companies can’t manage this alone and need innovative, disruptive partners like Letter Tech to help reduce costs and accelerate the transition through collaboration and fresh thinking.

Frantz stresses that if established automakers and suppliers don’t collaborate with other companies then they risk being disrupted by new players. In this changing industry, collaboration with innovative small firms is essential to stay competitive and advance into the future of automotive technology.

Agreeing with Frantz’s point on collaboration, Flavio explains more about Project Arrow, a collaborative initiative that was formed by suppliers that brought together over 500 companies to create an original automotive design. In the Project Arrow example, Flavio mentions that different industries, such as AI and 3D printing, worked together to create breakthroughs. 

In the instance Flavio cites, the collaboration developed a lightweight chassis made of three polycarbonate pieces instead of the typical 50, reinforcing it with aluminum instead of steel. Such an innovative design reduced the vehicle’s weight by 300 pounds, increasing the range for electric vehicles by about 8%. These innovations show how combining ideas from different fields can lead to significant advancements.

He also emphasizes the potential to reduce manufacturing costs. By collaborating, they managed to reduce the price of the vehicle by $10,000. This cost-saving could then be reinvested in enhancing the passenger experience with features like textile computing, which monitors a driver’s vitals or augments driving ability.

“So we outfit the vehicle with textile computing that is tracking your vitals or augmenting your ability to drive. You know, in this country, you can start driving at 17. We can put all those things together, and hundreds of companies can come together and say, ‘Okay, on a clean sheet, this is what I could do.’  

If you can auto-drive this thing, that I can design the greenhouse a little bit differently, and in designing that greenhouse a little bit differently, using different technology in the glass that a company that doesn’t require the usual frosting and defrosting technology in it… That only happens in a collaboration project in an industry that is an incredibly rich applied technology sector.”

—Flavio Volpe, President of the APMA, Canada

Prioritize Long-Term Investment Strategies

Further, Frantz highlights the need for bravery and long-term thinking to maintain momentum in Canada’s automotive industry. He draws a parallel with Taiwan’s success in semiconductors, noting that despite limited local demand, Taiwan became a global hub through bold decisions. 

Frantz argues that Canada must adopt a similar approach, making generational decisions that focus on developing an ecosystem for the next 50 years, even if the immediate gains are minimal. He stresses the importance of risk-taking and moving beyond short-term political goals to create sustainable industries.

Frantz’s other concern is that political systems often operate on short-term cycles, which hinders long-term industry growth. He believes that Canadian entrepreneurs already demonstrate bravery and risk-taking. However, the political and legislative frameworks need to align with that mindset for the country to realize its full potential fully. To succeed, Canada must prioritize long-term investment strategies and policies that benefit future generations, not just short-term political agendas.

In this response, Flavio highlights that failure is part of innovation, citing the example of Nortel, whose collapse led to the rise of new leaders and companies in Canada. He emphasizes that governments and industries should support failure as a learning experience, not just chase success.

Frantz then turns to the importance of long-term vision for political leaders, likening them to a school headmaster who sets a culture for future generations. He highlights that successful legislators are those who implement policies that benefit future generations, not just their current term.

Frantz also tells the Emerj executive audience how technology and legislation have made innovations in the automotive space more accessible and affordable for everyone. He draws a parallel with mobile phones, once a luxury but now widely available. 

Similarly, advances in automotive safety, driven by legislation such as the EU’s General Safety Regulation, have made intelligent vehicle features like vulnerable road user detection available across all budgets:

“And so yes, cost is important, but it’s more a function of: can we do more? Can the vehicle be safer? Can the vehicle be safer for all budgets? The next frontier will be: Can the vehicle do more for the consumer, for all budgets? That’s going to drive innovation. I think once you have combined proper legislation with a proper roadmap and a timeline for that, innovation happens. Smart people figure out ways to get it done; it’s not a function of cost. Actually, it always boils down to cost for a specific purpose. In this case, it’s the cost of improving the performance of the designs of the systems so that everyone can actually have the right to a safe car.”

–Frantz Saintellemy, CEO & President of LeddarTech