STELLANTIS TO RECEIVE SUPPORT FROM ONTARIO GOVERNMENT

By Éric Descarries

Following the billions of dollars granted by the Canadian government to the German automaker Volkswagen, the universal automaker Stellantis has asked local authorities to review the few million dollars the federal government had decided to give it to help build a new plant in the Windsor region, which would cost it approximately five billion dollars. Otherwise, Stellantis, which has owned the Chrysler brand in Canada since 1925, is threatening to halt construction of the plant, where batteries and operating modules would be produced, and to move part of its operations elsewhere.

On June 1, Ontario Premier Doug Ford, seeing the magnitude of the problem (especially the possibility of job losses), announced, without going into details, that he would involve his government and offer “a third of what it will cost” to help Stellantis in its bid to build the plant in Ontario. Initially, the Ontario government had offered Stellantis $500 million in assistance. Stellantis is partnered in this project with South Korean giant LG Energy Solution. This is another case to watch.