Canadian Prime Minister Justin Trudeau who is on a visit to St Thomas, Ontario discusses the prospects of the upcoming Volkswagen electric vehicle battery factory, which is said to be the largest EV battery Giga factory in Ontario, Canada. In a tweet, the Canadian PM says he sat down with entrepreneurs from the area and spoke with them about how this investment will help grow the local economy and the small businesses they operate.
He made these remarks on Twitter following the reports that Canada’s Parliamentary Budget Officer (PBO) is probing the federal government’s $13.8 billion deal with Volkswagen made to incentivize it to build its giant battery factory to be set up outside of Europe for the first time in Ontario.
The Epoch Times reported that his office began analyzing the expensive deal near the end of April and is aiming to publish it at the end of Parliament’s spring session, scheduled to conclude on June 23.
The budget officer said Parliamentary Budget Officer began an analysis.
“We had planned to start a study of the VW deal before Mr. Poilievre asked for it but had not started it formally,” Giroux said with The Epoch Times.
The Volkswagen Group German automaker is ambitious in its electric vehicle (EV) strategy in North America and in line with it VW’s battery company PowerCo SE hopes to build a giga factory with up to 90 GWh annual production. The company boasts the new factory will create 3000 skilled jobs while assuring nearly about 10,000 indirect jobs in Ontario region with an investment of 7 billion Canadian Dollars.
The Canadian government has already pledged a 13 Billion tax concession for the German automaker.
Thomas Schmall, Volkswagen Group Board Member for Technology: “North America plays a key role in our global battery strategy. The region will become PowerCo SE’s second pillar beside Europe, with battery cells made in North America for North America. Gigafactory St. Thomas opens the door to a key market for e-mobility and battery cell production. We aim to make PowerCo a global player in the battery business and to pave the way for clean, sustainable mobility. Gigafactory St. Thomas is an important milestone in our roadmap.”
According to a media release by Volkswagon the new factory’s groundbreaking is planned for 2024 and production is projected to begin in 2027 the cell factory will be built over an area of around 370 acres equivalent to more than 210 football grounds. The entire industrial and supplier park amounts to 1,500 acres.
However, Prime Minister Trudeau is criticized by some parts of Canadians for his will to give big tax heaven for the company. Replying to his Twitter message on the prospects they claim that 13 Billion taxpayers’ money should not be given to the German Automaker. They point out that it is baseless that while Volkswagon invests 7 Billion government is going to offer them a 13 billion concession.
Last month, we announced Volkswagen is opening a massive electric vehicle battery factory in St. Thomas. When I sat down with entrepreneurs from the area this afternoon, we spoke about how this investment will help grow the local economy and the small businesses they operate. pic.twitter.com/ToHydy9AY4
— Justin Trudeau (@JustinTrudeau) May 25, 2023
