The arrangement will be formally announced in St. Thomas on Friday, but was confirmed to The Globe by a federal source
The federal government will provide Volkswagen with up to $13-billion in annual production subsidies for its new electric-vehicle battery plant – nearly double the estimated $7-billion cost of building the facility in St. Thomas, Ont.
Beyond just its scale, the deal is structurally different from any that governments in this country have previously negotiated. While the U.S. has more history with production subsidies, through tax credits, Canada normally sticks with subsidizing investment costs. In previous deals with automakers, that has usually ranged from 10 to 20 per cent of projects’ capital budgets.
Volkswagen’s commitment also has some perceived symbolic value, because it is to be the global giant’s first large battery factory outside Europe. It’s also the first major new foray into Canada by an automaker that does not already have roots here since the 1980s.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Volkswagen to get up to $13 billion from Ottawa to make EV batteriesGerman auto giant Volkswagen has secured an exclusive contract with Canada worth more than $13 billion over the next 10 years to build an electric-vehicle battery plant in southern Ontario.
Read more »
Canada rakes in $13 billion of orders for 5-year note in record U.S. dollar dealCanada sold a record amount of five\u002Dyear notes in U.S. dollars as the inverted yield curve on Treasuries pushed investors elsewhere. Read on
Read more »
Canada matched Biden subsidies to win Volkswagen battery plant - BNN BloombergPrime Minister Justin Trudeau’s government agreed to subsidies that may top $13 billion (US$9.7 billion) over a decade to land an electric-vehicle battery plant by Volkswagen AG, the company’s first gigafactory outside Europe.
Read more »
Sources say Volkswagen’s new Ontario plant will dwarf previous automaker investmentsOttawa and Queen’s Park hope the auto giant’s new manufacturing complex will be the lynchpin of a new “green” supply chain in Canada.
Read more »
Edmunds: 2023 Honda Civic Type R vs. 2023 Volkswagen Golf RIf a traditional two-door sports car isn't practical enough for you, consider one of these hot hatch options: the Volkswagen Golf R or the Honda Civic Type R.
Read more »