Transport Canada is investing $1.6 million to support the design and testing of prototypes aimed at enhancing vehicle security and reducing theft.

The Minister of Transport and Leader of the Government in the House of Commons, Steven MacKinnon, made the announcement on March 25. The projects will be funded through the Innovative Solutions Canada program, administered by Innovation, Science and Economic Development Canada.

The Royal Canadian Mounted Police (RCMP) is also partnering in the search for prevention tools. The proposed technologies are designed to detect, deter and counter vehicle theft.

The three selected projects will proceed to the development and prototype testing phase. The chosen firms are based in Ontario:

  • Carmodity Ltd., a Toronto-based firm, is proposing a miniaturized device that can disable vehicle components upon theft detection;
  • Steel Mirror, also based in Toronto, is developing an artificial intelligence (AI) powered steering wheel locking device that monitors for tampering, towing and alarms;
  • Audesse Automotive, a company from Kitchener, is designing a smart automotive switch that prevents unauthorized starts by communicating with the driver’s phone.

The funding will allow them to build functional prototypes of their concepts. It will then be up to them to commercialize their technologies and bring them to market independently.

Hacking of key fobs has increased in recent years, to the point that a class action was authorized last summer by the Quebec Superior Court against automakers. Faced with sustained efforts by regulators and police services, criminal networks are adopting increasingly sophisticated methods to evade enforcement, two investigators from Équité Association told Insurance Portal in May 2025.

Insurers react

The Insurance Bureau of Canada (IBC) welcomed the initiative from the federal Department of Transport. “Auto theft remains a serious and evolving threat to public safety,” says Liam McGuinty, Vice-President, Federal Affairs at the IBC. The announcement is part of the National Action Plan on Combatting Auto Theft.

According to him, the announcement “marks another meaningful step in advancing the National Action Plan to Combat Auto Theft and strengthening prevention efforts nationwide.” He adds that the Bureau and its members work to “advance effective evidence-based solutions that reduce auto theft, enhance public safety and strengthen Canada’s response to this ongoing crisis.”