The up to $13 billion the federal government has promised Volkswagen to build its EV battery plant is being hotly debated. Is it worth it?
The rising sticker shock of establishing a manufacturing base for electric vehicles is, depending on who you ask, either a worthy investment to secure the next generation of auto assembly or a sign that Canada should consider giving up the subsidy race and not worry so much about the sector in general.
"You either have to restate what the other deals cost before, or admit that we're doing an apples to oranges comparison." The auto industry, however, and the economy in general is already humming, and Canada has numerous wins on electric vehicles already that secure an electric vehicle manufacturing base. The situation means it doesn't seem to make much sense to spend so richly to establish the Volkswagen plant, said Rob Gillezeau at the University of Toronto's Rotman School of Management.
Whether the plant is necessary or not, Canada did need to step up on subsidies to secure it, said Greig Mordue, chair in advanced manufacturing policy at McMaster University.
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