In a campaign-style speech that attacked federal Conservative Leader Pierre Poilievre by name for his opposition to corporate subsidies, Prime Minister Justin Trudeau said the factory — to be the largest in Canada — will deliver an economic impact equal to the taxpayer support within five years.
The batteries produced at the factory, one of three such VW facilities in the world, will power some 25 new models of Volkswagen, Audi and Skoda electric vehicles by the end of the decade. Ontario’s contribution is $500 million directly to Volkswagen plus “hundreds of millions” to bolster roads and other local infrastructure including police and fire services around the plant.
Frank Blome, chief executive of PowerCo, said the plant will produce enough batteries to supply one million vehicles annually. The government assistance was crucial to luring VW and sets a precedent for others to come, said Dennis Darby, chief executive of the Canadian Manufacturers and Exporters.