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It comes after Stellantis called for an overhaul of the Brexit deal struck between the UK and EU, saying a change in rules on where vehicle components are sourced from threatened the viability of its plants in Britain. “Once those decisions get to a certain point down the road they are very hard to reverse and we cannot afford to let these jobs slip through our fingers,” the national president of Unifor, Lana Payne, said. The country’s largest auto workers union called the standoff “outrageous” over fears that thousands of jobs could be lost if the two sides fail to reach an agreement. “I’m hopeful that an agreement will be reached because this is hugely important for the Canadian economy.” “If we don’t compete with the Americans on these strong subsidies, it will be very difficult to make the case to put these types of facilities in Canada,” he said, as the race for the electrification of the industry accelerates. We can’t afford to lose Stellantis.”īrian Kingston, the head of the Canadian Vehicle Manufacturers’ Association, said the standoff was a “very serious situation” but senior government officials recognised the importance of securing the Stellantis investment. “But we believe in working with the federal government. “It’s disappointing it’s come to this right now,” said the province’s premier, Doug Ford. However, Ontario, which granted C$500m in subsidies to Stellantis and Volkswagen, is arguing that the onus is on the federal government to kick in more money to save the project.
“We fought very hard for them to invest in Canada and we certainly want them to continue making investments, and now is the time for our friends in Ontario to pay their fair share.” “Trust me, it’s very difficult to attract these investments,” he told reporters from Seoul, before a planned impromptu meeting with LG bosses. Champagne has called on Ontario to add more money to pay its “fair share” in order to rescue the deal.
Now, Stellantis has demanded similar benefits from Canada, warning that otherwise it will move production to the US.Ĭanada’s prime minister, Justin Trudeau, and industry minister, François-Philippe Champagne, were in the South Korea capital on Wednesday in an attempt to salvage the plans. In April this year, Ottawa matched incentives offered under the IRA in order to secure a deal with Volkswagen for a sprawling battery plant in St Thomas, Ontario, with subsidies that could cost as much as C$13bn over the next decade. Months later, the US passed the Inflation Reduction Act, promising generous subsidies for battery production. The factory opening date was set for 2024, with the deal touted by the governing Liberal party as a key win in luring multinational automakers to the country.
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