Stellantis’s auto assembly plants in Windsor and Brampton in Ontario will get $3.6 billion worth of upgrades to support the company’s push toward electric vehicle and battery production.
Prime Minister Justin Trudeau and Ontario Premier Doug Ford visited Windsor, Ont., with Mark Stewart, chief operating officer of Stellantis North America, on Monday to announce that Stellantis is investing billions of dollars into retooling and modernizing the two plants.
The company also said these changes, along with the creation of new research and development centres, will fuel new jobs — specifically the return of a third shift at both plants.
“We are really happy to be here today to share more good news and stability for our Canadian operations,” Stewart said, adding this announcement secures opportunities for “generations to come.”
In a news release Monday, the company said it will transform the plants into “flexible, multi-energy vehicle assembly facilities” ready to “produce the electric vehicles of the future.” The media release had said the investment was $3.4 billion, but during the announcement, officials clarified it’s a $3.6-billion investment.
“It’s a plan that will see Ontario retake its rightful position as North America’s leader in automotive manufacturing as it was for over 100 years, and today we are once again seeing that plan in action,” Ford said during the news conference at the Windsor Assembly Plant.
“We know that we can and should build the vehicles of the future right here in Ontario. We have the expertise, we have the best workers anywhere on this planet, we have the critical minerals needed to power the EV vehicle revolution — now we have the competitive business environment needed to attract game-changing global investments.”
Mark Stewart, chief operating officer of Stellantis North America, says the upgrades to the plants will secure opportunities for ‘generations to come.’ (Mike Evans/CBC)
This announcement comes on the heels of a $4.9-billion, joint-venture EV battery plant that was announced by politicians, Stellantis and South Korean battery manufacturer LG Energy Solution in March for the southwestern Ontario region.
For the Windsor Assembly Plant, Stellantis hopes the changes will diversify its ability to introduce battery-electric or hybrid models to the production line to meet what it calls “growing demand for low-emissions vehicles.”
The province is funding up to $287 million with this renovation.
“The hard work Windsorites have put in to building their community, their future, has defined you … and it’s really been recognized and is significantly paying off,” Trudeau said.
At the Brampton Assembly Plant, Stellantis will also change its assembly line to allow it to produce battery-electric and hybrid vehicles, with the province committing $132 million to the facility.
The announcement, Trudeau added, is not only good for Canada’s auto and manufacturing sector, but also for the environment.
“Not only are we growing a world-leading auto industry creating hundreds of jobs, and securing thousands more, we’re keeping our air clean by building and driving more EVs here at home,” he said.
Prime Minister Justin Trudeau was at the announcement at the Windsor Assembly Plant Monday. (Jennifer La Grassa/CBC)
2 new R&D facilities planned with EV focus
The company will also build two new research and development facilities that focus on EV production and battery technology.
Stellantis will expand its Automotive Research and Development Centre in Windsor by building two Electric Vehicle and Battery Pack Testing Centres of Competency, which will support everything from auto design to development.
The centres are also expected to provide opportunities for students in university, college and startups that want to take part in EV production.
About 650 new jobs are expected to be generated from these facilities.
According to Stellantis, the province is investing up to $94 million for these centres.
In total, the province is providing up to $513 million to fund these developments.
A news release from the Ontario government had said Ottawa was matching Ontario’s investment, but a news release from the federal government says it is investing $529 million toward the project.
“This is a moment we’ve all been waiting for,” said François-Philippe Champagne, minister of innovation,science and industry, in a news release.
“We’re going to be continuing to make a difference because this is truly transformational for our industry.”
With these changes and the EV battery plant, Stellantis said it’s investing $6 billion in the province’s auto industry.
Return of the 3rd shift
During Monday’s announcement, Stewart said the second shift at the Windsor Assembly Plant will remain in place until the end of the year.
He also said that the third shift, which ended in July 2020, will return.
The termination of the 27-year shift affected 1,500 workers, with more than 700 given buyouts at the time.
Stewart did not say when the shifts will return.
Mayor Drew Dilkens said at Monday’s announcement that Windsor is ‘electrified,’ and a trusted community and employer for Stellantis to be investing locally. (Jennifer La Grassa/CBC)
He also said the company is not yet ready to announce which vehicle productions will go to each plant, but they are “excited” about the lineup, which will have an “expanded portfolio” of vehicles.
Windsor Mayor Drew Dilkens also spoke at the announcement Monday.
“Each of us has gone through the trials and tribulations, the ups and downs of an auto sector — we’ve lived through it here in Windsor,” he said.
“There is no doubt Windsor is on the move … Windsor’s place at the heart of the automotive renaissance is clear.”
HALIFAX – Ottawa is negotiating a $500-million bailout for Nova Scotia’s privately owned electric utility, saying the money will be used to prevent a big spike in electricity rates.
Federal Natural Resources Minister Jonathan Wilkinson made the announcement today in Halifax, saying Nova Scotia Power Inc. needs the money to cover higher costs resulting from the delayed delivery of electricity from the Muskrat Falls hydroelectric plant in Labrador.
Wilkinson says that without the money, the subsidiary of Emera Inc. would have had to increase rates by 19 per cent over “the short term.”
Nova Scotia Power CEO Peter Gregg says the deal, once approved by the province’s energy regulator, will keep rate increases limited “to be around the rate of inflation,” as costs are spread over a number of years.
The utility helped pay for construction of an underwater transmission link between Newfoundland and Nova Scotia, but the Muskrat Falls project has not been consistent in delivering electricity over the past five years.
Those delays forced Nova Scotia Power to spend more on generating its own electricity.
This report by The Canadian Press was first published Sept. 16, 2024.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
