in Alliston, and $1-billion for a Stellantis-LG battery plant in Windsor. Of the three announcements, two are for the refurbishment of existing facilities. Only the battery plant in Windsor is new.
Here’s how these things typically work. About two years before an aging model is set for an overhaul – which occurs at five- or six-year intervals – a manufacturer decides whether the new version will be made in an Ontario plant or elsewhere . When that happens, the federal and provincial governments assemble a package to encourage them to stay, usually offering about 20 per cent of the total spending the automaker will need to refurbish the plant.
Ottawa is getting closer to a vision for Canada’s green-economy future, but the budget shows it still lacks conviction While the United States’ one-and-done practice can be characterized as “buying” jobs, the typical Canada-Ontario method is to “rent” them until the next model change, when the lease on those jobs comes due. In fact, several assembly plants in Ontario have received incentive packages on multiple occasions since 2000.
For a little more nuance, consider the recently announced Honda project. which is typical of the long list of refurbishment projects Canada and Ontario have lined up to support. It is said that the $267-million Honda is getting to refurbish its Alliston plant will keep production there for six years. But that $267-million will fund about six months’ worth of pay and benefits for Alliston’s 4,000 workers, while a plant in Mexico would take eight to 10 years to dispense that much to its workers.