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Doug Ford downplays fears over Volkswagen battery plant delay
Premier Doug Ford is downplaying fears over the future of a massive Volkswagen battery plant in southwestern Ontario.
Ford argues that it’s actually good news that Volkswagen is delaying the opening of the plant for two years.
The Volkswagen battery plant in St. Thomas was supposed to open next year at a cost of $7 billion, creating an estimated 3,000 jobs.
But the Volkswagen subsidiary building the plant now says it won’t open until two years later, in 2029, in the face of Canada’s tariff war with the U.S. and weakening demand for electric vehicles.
“I look at it as confidence,” Premier Doug Ford says.
Ford says the delay is a good thing since Volkswagen is going ahead with the plant.
“That says okay we’re in uncertain times around the world right now but we have confidence in Ontario. We have confidence in the government and the people,” he says.
“What would make me worried, if they said they aren’t building. But they’re building.”
“To me, it’s a great news story,” says Vic Fedeli, Ontario economic development minister.
But the opposition at Queen’s Park argues the delay is a bad sign.
READ MORE: Volkswagen delays production at Ontario electric vehicle battery plant until 2029
“I think a lot of workers, there’s like 3,000 workers and tens of thousands of spinoff jobs that depend on this, them and their families, are going to be living with more uncertainty again here,” says Marit Stiles, NDP leader.
“Sure, they might have shovels in the ground, let’s say that building gets built but if the company isn’t there to manufacture, what have we built?” says Liberal MPP Stephanie Smyth.
Kyle Peacock, a tariff consultant says Volkswagen may be waiting to see the outcome of the Canada-U.S. trade war along with Chinese electric vehicles coming to Canada before deciding whether to go ahead with the battery plant.
“This was a good idea prior to the trade war, prior to Canada allowing the Chinese EVs into the Ontario market. But now that that has shifted I think Volkswagen is taking the wait and see approach,” Peacock says.
“I think this one now will be put to the side until they really see that there’s a feasible outcome.”
“We’re in an economic war against President Trump right now,” Ford says.
While the province expresses confidence in the battery plant’s future, David Paterson, Ontario’s trade representative in Washington says things are changing in the U.S.
“There’s a notable shift from the early days of the Trump administration to where we are now. Where we see business and people right across the United States dealing with high diesel prices, high gasoline prices. Food therefore follows with high prices and we see business uncertainty … but we have allies in the United States, lots of powerful allies,” Paterson says.
He argues that U.S. political support for Canada and a trade agreement is growing.
