The government and the economic growth company in London, Ont., are running in combination to develop Volkswagen’s electric-vehicle provide chain in Canada.
Ottawa on July 12 mentioned it is going to give the London Financial Construction Company $300,000 to assistance forge connections between the Southwestern Ontario town’s car providers and VW’s world chain, particularly with hyperlinks in Germany and Spain.
The cash comes simply months then the government pledged it could give the sector’s largest automaker as much as $13.2 billion in subsidies to form EV batteries in close by St. Thomas, Ont.
“This will connect the supply chains of three of VW’s most prominent global battery manufacturing hubs,” the Federal Financial Construction Company (FedEv) for Southern Ontario mentioned in a remark.
FedDev says the cash will assistance as much as 120 firms and organizations from world wide secured VW’s world provide chains for battery production.
“This will ensure that Canadian companies have the opportunity to contribute to this growing and important market,” FedDev mentioned. “In addition, up to 25 new partnerships will be developed to attract additional investments from European suppliers into the region’s EV sector.”
The government says London and its environment communities “are at the forefront of this exciting new chapter for southern Ontario’s automotive sector.”
Stellantis may just obtain as much as $15 billion in federal subsidies for its $5-billion EV battery plant, these days underneath building about 180 kilometres southwest of Volkswagen’s $7-billion plant.
“The shift towards electric-vehicle and battery manufacturing is opening up many new opportunities for existing suppliers in the region to meet the demand for parts and technologies that are essential for the production of EVs,” FedDev mentioned. “They are also demonstrating to foreign businesses that southern Ontario is the destination to support the expansion of the automotive industry.”
London Financial Construction Company CEO Kapil Lakhotia referred to as the $300,000 in investment “instrumental in fostering strategic partnerships.”
