2023-05-16 08:19:57
Unkept promises according to Stellantis
Stellantis, le automotive giant, put the handbrake on. The group planned to set up its electric vehicle battery factory in Windsor, Ontario. This is an investment of 3.6 billion euros for the firm.
But why such a sudden stop? The answer lies in government grants. Stellantis accuses the Canadian government of not having kept its promises. But above all, the recent signing of an agreement with the German Volkswagen do not pass. Indeed, for the German project, Canada signs a subsidy check for 13 billion Canadian dollars. That is much more than for the future Stellantis factory.
Consequences for Canada and its ecological ambition
Faced with this situation, the Canadian government is trying to reassure. Negotiations are underway, according to the Minister of Industry, François-Philippe Champagne. But the discontinuation of the Stellantis project has an impact far beyond the current negotiations. In effect, this plant was to produce more than 45 gigawatt hours (GWh) per year. But above all, create 2,500 new jobs. In addition, the Windsor region is a hub for the Canadian automotive industry. Thus, the establishment of such a factory would undoubtedly have boosted its local economy.
In addition, this project fits in Canada’s efforts to attract players in the electric vehicle sector. A growing sector, essential to the ecological transition. The country relies above all on tax incentives and the abundance of rare minerals to attract these players. This strategy echoes that of the United States. The country of Uncle Sam provides billions in subsidies for green industries in its great climate plan and against inflation.
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