Ford touts $7B Volkswagen EV plant as sales trend downward
Despite the struggles of recent major EV projects, construction is set to begin on another multi-billion-dollar electric vehicle plant in Ontario.
Despite the struggles of recent major EV projects, construction is set to begin on another multi-billion-dollar electric vehicle plant in Ontario.
Despite significant government spending, Ontario Premier Doug Ford celebrated the groundbreaking of Volkswagen’s $7-billion battery plant in St. Thomas, even as other projects have failed.
“Shovels will soon be in the ground in St. Thomas, as hundreds of Ontario workers from Steelcon and Magil Construction build Volkswagen’s new electric vehicle battery plant,” Ford wrote Thursday on X.
“This game-changing factory is creating thousands of good-paying jobs in southwestern Ontario and will help secure Ontario’s place as a world leader in auto manufacturing.”
The facility is scheduled to open in 2027.
Just weeks ago, the premier demanded that Ottawa scrap its zero-emission sales mandate which requires 20 per cent of new car sales be electric by 2026 and all by 2035 calling it unworkable.
“We have to get rid of these mandates … The market will dictate, not governmental dictate,” Ford said in July, before adding, “Let’s not slow down on building the battery plants and any other EV plants.”
Despite assurances by Ford that the market favours EV production, trends indicate purchases of electric vehicles are under mounting strain.
Sales in Canada plunged more than 40 per cent between December 2024 and January 2025 after federal rebates expired, Statistics Canada data shows.
EVs made up just 6.5 per cent of sales by March, down from nearly 14 per cent in 2023, while gas-powered vehicles jumped nearly 60 per cent. Despite this, the federal mandate created under Justin Trudeau and maintained by Prime Minister Mark Carney remains.
Market turmoil has already hit Canadian plants. Stellantis suspended electric Dodge Charger production in Windsor this spring, while Honda postponed a $15-billion battery plant. Quebec EV firm Lion Electric sought liquidation in May, and charging company Flo shuttered its Shawinigan factory this month.
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Who is paying for it? Canadian tax payers I am sure. If the plant is build, in time, it will be re-purposed to a amazon warehouse. LOL!
I can't wait for the factory to be bankrupt before it's even fully built or for Volkswagen to find a way to use the money elsewhere.