2023-05-15 23:12:15
(Windsor) One of the world’s largest automakers announced Monday that it has halted construction of an electric vehicle battery plant in Windsor, Ont., saying the federal government has failed to deliver on its promises.
The news prompted the Premier of Ontario to implore Ottawa to come to an agreement with the company.
Stellantis, which notably manufactures Chrysler, Ram and Fiat vehicles, and the South Korean battery manufacturer LG Energy Solution announced last year the construction of a 5 billion plant, which was to create 2,500 jobs.
All levels of government were to provide financial support within the framework of an agreement, still to be tied up.
“So far, the Canadian government has failed to honor what has already been agreed upon, so Stellantis and LG Energy Solution will begin implementing their back-up solutions,” the company said in a press release. “As of now, all work related to the battery production plant has stopped. »
The federal government says negotiations are continuing. “We will continue to fight for the best deal for Canada,” Deputy Prime Minister Chrystia Freeland said Monday during Question Period in the House of Commons.
At the exit of the communes, Mme Freeland said she was optimistic about the outcome of the negotiations. “But I also want to point out that the resources of the federal government are not infinite. We are counting on Ontario to do its fair share and on Stellantis to be reasonable,” she added.
Ontario Premier Doug Ford said he was “very concerned” during a press briefing.
He says the government must support Stellantis the same way it did for Volkswagen. A recent agreement with this automobile company provides for the construction of an electric vehicle plant in St-Thomas, Ontario.
The agreement with Volkswagen provides for an investment of 700 million from the federal government and 500 million from Ontario, in addition to subsidies for the cost of production of each battery, ie from 8 to 13 billion in a decade.
These grants are intended to compete with the United States, which offers similar grants.
“We’re sure they made a promise to the people of Windsor — I was there with the Prime Minister (Justin Trudeau). Now they have to keep their promise to the people of Windsor. »
Mr. Ford’s plea joins those of the Mayor of Windsor and Unifor, the country’s largest private sector union.
The Canadian Taxpayers Federation, on the contrary, thinks that Ottawa should reject Stellantis’ demands.
“If you distribute millions of taxpayer dollars to one auto company, of course the others will follow,” said the organization’s director, Jay Goldberg, in a press release. “Taxpayers can’t afford to throw money at every company imaginable and Ottawa needs to say no before throwing away billions more. »
With information from Mia Rabson, in Ottawa
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