2023-05-15 19:30:37
The giant Stellantis, made up of the PSA and Fiat Chrysler groups, has suspended the construction of its battery plant for electric cars in Windsor, Ontario, on the pretext that the federal government has not fulfilled its investment obligations.
“The Canadian government did not deliver on what was heard, so Stellantis and LG Energy Solution will begin implementing their contingency plans. As of now, all construction work on the battery production module at the Windsor site has been stopped,” the company said in a statement sent Monday.
The exit follows a report by the “Toronto Star” which said on Friday that Stellantis might abandon its factory project unless it obtains more funding from the provincial and federal governments.
The company announced the partnership with LG Energy, the construction of a battery factory valued at US$4.1 billion (approximately C$5.5 billion), in March 2022. The factory is due to start operating in 2024 and provide work for some 2,500 people.
However, according to the “Toronto Star”, it is the agreement announced last month between Ontario and the federal government with Volkswagen for the establishment of a mega-factory of batteries that would have remained across the throat of Stellantis . The Trudeau government has put on the table regarding $13 billion over ten years in incentives for the factory, valued at $7 billion.
Stellantis would now like to review its agreement with the government to match the aid expected for its own factory.
Ontario Premier Doug Ford said he was “very concerned” regarding the work stoppage.
“You know, we need the federal government to step up like it did for Volkswagen,” he said, calling on Ottawa to talk to Stellantis regarding saving the factory project.
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