“Stellantis Plant in Windsor Suspended: Updates on Ontario’s Funding and Volkswagen’s Mega-factory”

2023-05-20 08:59:14

The multinational, which manufactures Chrysler, Ram, Jeep, Peugeot and Fiat vehicles, among others, suspended construction of its plant in Windsor last weekend.

The company has accused the federal government of not respecting its commitments regarding the plant project announced with great fanfare last year.

Ottawa then returned the ball to the Ontario government, asking it to improve its subsidy.

13 billion for Volkswagen

Ottawa and Ontario were initially to pay $500 million each for the Stellantis plant, a $5 billion project.

However, the federal government promised in April to invest up to $13 billion in another Ontario battery mega-factory project, that of Volkswagen in St. Thomas.

Premier Ford did not say on Friday how much more money Ontario will offer Stellantis or what form that funding will take, but he confirmed it will be more than the $500 million pledged last year.

« I won’t give details until the official announcement. But the objective is to protect jobs. »

A quote from Doug Ford, Premier of Ontario

For his part, the Federal Minister of Industry, François-Philippe Champagne, declared on Friday that progress were underway to finalize the deal between Ottawa and Stellantis and get things back on track.

The industry minister says he had a productive meeting in Seoul this week with the chairman of LG Energy Solutions. I think we have a common understanding of the way forwardhe pointed out from Washington, USA.

Stellantis meanwhile declined to comment on the news on Friday.

For the NDP, this is a “very positive development to see [Doug] Ford to assume its responsibilities and sit at the table for the residents of Windsor-Essex”.

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Ford earlier this week refused to top up his grant, saying Ontario had offered the same amount to Stellantis as it did to Volkswagen.

The Stellantis plant in Windsor is due to open in 2024 and create 2,500 jobs.

Volkswagen’s in St. Thomas is scheduled to begin production in 2027 and employ 3,000 workers.

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