Volkswagen Group’s plan to construct a battery cell manufacturing plant in St. Thomas, Ont., introduced March 13, is a part of a brand new chapter for Canadian automotive that may seemingly see extra automakers put down important roots within the nation, trade consultants say.
This new “epoch” of auto funding might rival different previous progress eras, such because the arrival of Honda and Toyota, which each constructed meeting crops in Ontario within the Eighties, mentioned Brendan Sweeney, managing director of the Trillium Community for Superior Manufacturing.
“We’re going to look again upon this as considered one of, if not probably the most, thrilling occasions for Canada’s automotive trade, particularly as a result of it got here after a pair darkish years.”
Particulars of Volkswagen’s deliberate cell plant haven’t been launched, however Federal Trade Minister François-Philippe Champagne touted the dedication because the nation’s largest-ever auto funding.
“This can be a fully new chapter in our auto sector,” he mentioned.
Volkswagen will turn into the primary European automaker to ascertain a major manufacturing presence in Canada, a milestone that’s significantly important as a result of it comes amid stiff competitors from incentives supplied in the US, Sweeney mentioned.
“This can be a greenfield funding, and so it’s a good indication of simply how aggressive we’re. It’s not solely our incumbent producers which can be selecting to take a position.”
The German automaker’s plan for St. Thomas follows a wave of different automotive spending in Ontario and Quebec that quantities to about $20 billion over the previous two years.
Canada has confirmed it has “lots” to supply potential traders, mentioned Sam Fiorani, vice-president of world car forecasting at U.S.-based AutoForecast Options. Amongst different attracts, he credit the renewed push from the federal and provincial governments to attract traders into the nation.
“They’ve raised their profile to world automakers. Volkswagen is simply the latest member to hitch that group, however it shouldn’t be the final.”