Premier Ford not worried about Volkswagen battery plant delay
TORONTO — Ontario Premier Doug Ford said Friday he is not worried about a two-year delay in the opening of a massive Volkswagen electric vehicle battery plant in southwestern Ontario.
Ontario Premier Doug Ford expressed no concern on Friday over a two-year delay in the opening of Volkswagen's $7-billion electric vehicle battery plant near St. Thomas, Ontario. PowerCo Canada, a Volkswagen subsidiary, cited a decrease in demand for electric vehicles as the reason behind the setback. The company has appointed EllisDon as the general contractor for the next stage of construction, and Ford remains optimistic that the facility will eventually be completed and operational.
Ford emphasized the significance of the plant being constructed, considering it to be the fourth-largest building in the world at 16 million square feet. Economic Development Minister Vic Fedeli echoed Ford's positive outlook, stating that the building is proceeding and the substantial investment is welcome. The plant was originally announced in 2023, with the federal government providing $700 million in upfront capital costs, and Ontario contributing $500 million in funding.
The governments are also offering $1.4 billion in loans and a potential $13 billion in subsidies tied to production output. However, opposition parties remain skeptical about the news, with NDP Leader Marit Stiles and Liberal legislator Stephanie Smyth expressing concerns about the impact on workers, other industries, and the region, which has already experienced layoffs.
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