Stellantis is announcing major investments in electric vehicle manufacturing, including retooling the Windsor Assembly Plant and building two new research and development centres.
Ontario is attracting a $3.6 billion investment from Stellantis in the automaker’s Windsor and Brampton plants.
The investments are expected to accelerate the creation of one of the most vertically integrated electric vehicle supply chains in North America.
Stellantis will retool and modernize the plants in Windsor and Brampton, converting them to flexible, multi-energy vehicle assembly facilities ready to produce the electric vehicles of the future. Officials say the Windsor Assembly Plant will return to a three-shift operation when the changes are in place.
The company will also build two new research and development centres focusing on electric vehicles and EV battery technology.
Ontario is supporting all these critical investments with up to $513 million, with a matching investment from the federal government.
“Ontario has everything it needs to be North America’s auto manufacturing powerhouse once again,” said Premier Doug Ford. “Where other governments stood by and watched jobs flee this province, we are getting it done and ensuring that cars of the future are made in Ontario by Ontario workers.”
Stellantis will build a new, flexible, multi-energy vehicle assembly line at its Windsor plant. The strategic retooling will diversify the company’s capacity by introducing battery-electric or hybrid models to the production line to meet growing consumer demand for low-emissions vehicles. Ontario is supporting the retooling with a commitment of up to $287 million.
“These investments re-affirm our long-term commitment to Canada and represent an important step as we move toward zero-emission vehicles that deliver on our customers’ desire for innovative, clean, safe and affordable mobility,” said Mark Stewart, chief operating officer, FCA – North America.
“We’re grateful to both the Federal and Provincial governments for their shared vision to create a sustainable future. And to Unifor and our workforce for their support in helping ensure the viability of our Canadian operations for the long-term.”
The Unifor Windsor Regional Environment Council released a statement Monday afternoon applauding the announcement.
“It is proof-positive that the environment and the economy can both be successful at the same time. These good-paying auto sector jobs will build the clean electric vehicles of the future while protecting our environment and reducing greenhouse gases while having a positive impact on global warming at the same time,” council president Richard St. Denis said. “Canada will be a world leader in the transformative vehicle manufacturing for generations to come.”
Stellantis will also modernize its Automotive Research and Development Centre in Windsor by expanding and building two Centres of Competency.
The Electric Vehicle and Battery Pack Testing Centres of Competency is expected to establish Ontario as a major R&D hub for the company across all stages of production – from design to development.
In addition to R&D, the centres aim to provide major opportunities for local talent, universities, colleges, and start-ups to participate in the development of Ontario’s EV ecosystem.
The hubs will be central to Stellantis’ R&D operations in North America and serve the company’s worldwide needs for technology, process and product development. Ontario is supporting the R&D investment with a commitment of up to $94 million.
“We are in the middle of the biggest revolution in the auto industry since the conception of the assembly line in 1913. Now, because of Unifor’s auto-bargaining vision, Ontario is well placed to play an essential role in the new motoring revolution,” said Dave Cassidy, Unifor Local 444 president.
At its Brampton Assembly Plant, Stellantis will install a flexible assembly line capable of producing battery-electric and hybrid vehicles. This overhaul will diversify the automaker’s capacity to meet growing consumer demand for low-emission vehicles. Ontario’s commitment of up to $132 million helps secure the long-term future of the facility in Brampton.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
