Canada’s first lithium-ion electric vehicle (EV) battery manufacturing plant is coming to Windsor, Ont., as part of a $4.9-billion joint-venture deal between Stellantis and LG Energy Solution, federal and provincial officials announced Wednesday.
The operation is set to create 2,500 jobs in the region, with each level of government offering incentives for the project.
Ontario Premier Doug Ford, Economic Development Minister Vic Fedeli, federal Minister of Innovation François-Philippe Champagne, federal Transport Minister Omar Alghabra and Windsor Mayor Drew Dilkens were among those at the facility’s future site in the southwestern Ontario city for the announcement Wednesday.
“This is the largest automotive investment in the history of our province and the country as well,” said Ford.
“This game-changing battery plant will help guarantee that Ontario is at the forefront of the electric vehicle revolution and ensure we remain a global leader in the auto manufacturing just as we have been for over 100 years.”
The companies say they’ve “executed binding, definitive agreements” to establish the factory, set to have an annual production capacity of 45 gigawatt hours.
Stellantis chief operating officer Mark Stewart said the facility will supply a “substantial amount” of EV batteries.
“This battery plant is going to supply across North America for us as one of two that we have envisioned,” said Stewart, adding the factory’s proximity to the U.S. makes Windsor an ideal location for business.
Government officials as well as senior representatives from Stellantis and LG Energy Solution spoke at the announcement about the EV battery plant on Wednesday, touting benefits for the local community and Canadian auto sector as a whole. (Dale Molnar/CBC)
Stellantis plans to announce their second EV battery manufacturing plant, which will be in the U.S., in the coming weeks.
Stewart said Windsor’s new facility will be the size of about 112 NHL hockey rinks, with Champagne calling it Canada’s first gigafactory.
Governments, Windsor provide incentives
While each level of government has partnered in the deal to create massive incentives to the companies, it’s unclear how much funding the federal and provincial governments have kicked in.
When CBC News asked for details about the amount of taxpayer money that will be spent, Ford said: “I can’t divulge that. It would compromise some negotiations moving forward with other companies as well, but it’s a massive investment and its hundreds of millions of dollars.”
WATCH | Ford says he ‘can’t divulge’ how much Ontario, Ottawa have spent on the deal:
Ontario premier won’t say how much taxpayer money dedicated to new EV battery plant in Windsor, Ont.
7 hours ago
Duration 1:55
When asked how much federal and provincial funding is going toward a new $4.9-billion electric vehicle battery plant in Windsor, Ont., Premier Doug Ford said he could not say for now. 1:55
For its part, the City of Windsor kicked in a land assembly deal for the massive factory, money toward infrastructure development if needed and a long-term tax grant, according to an official with the city.
The city is buying land for the site located at 9865 Twin Oaks Dr. at a cost of between $45 million and $50 million. The city will then lease the land to the joint venture between Stellantis and LG Energy Solution.
The official said the city has negotiated conditional offers with each of these corporate owners, in case either backs out.
Windsor is in the process of securing two sections of land needed for the site — one owned by Enwin and another owned by a private resident.
Government officials and business executives stand in front of the site of the planned EV battery plant in Windsor that’s expected to be operational in 2024. An official said the new facility will be the size of about 112 NHL hockey rinks. (Mike Evans/CBC)
“This was a whole-of-government approach, and so this is a highly competitive space — not just city versus city, within the province, across the country, throughout North America,” said Dilkens.
The mayor said the city would do everything in its power to make a smooth transition to the new plant, which is set to break ground later this year.
Our local roots are in manufacturing and automotive, and we’re darn good at it.– Drew Dilkens, mayor of Windsor, Ont.
“Our local roots are in manufacturing and automotive, and we’re darn good at it,” said Dilkens.
“We’ve lived through the ups and downs of the global economy and we have lived through the ups and downs of he automotive industry. The men and women who work here never give up hope that there’s better days ahead.”
Nearly a week ago, Ford announced his government’s “critical minerals” strategy, aimed at capitalizing on the global demand for minerals crucial to items like EV batteries, and ensuring Ontario become a consistent supplier of those goods.
Heading into the official announcement, the prospect of an electric vehicle battery plant being built in Windsor sparked optimism about what it could mean for the region and the auto industry.
“This will put us on the map, not just here in North America, but globally,” said Rakesh Naidu, president and chief executive officer of the Windsor-Essex Regional Chamber of Commerce. “There’ll be a recognition of what Windsor-Essex can do in terms of not just how good we are in the conventional auto sector, but also in terms of the the new generation of auto technologies, and the new … EVs sector.”
Yvonne Pilon, president and CEO of WEtech Alliance, said the project would be great for talent retention and startup development in the region.
“There is a lot of technology in the electric vehicle, electric batteries, so from a startup perspective, we look at what this will mean for new companies coming to the region, new companies starting based on, again, a diversified and different supply chain,” she said.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
