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VW CEO says EV battery plant planned for Ontario could become one of the world’s largest

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A massive new electric vehicle battery plant in St. Thomas, Ont., is being hailed as a “game changer” for Canada’s auto sector and broader economy, as countries fight to secure investment in clean technologies.

Details of the multibillion-dollar project were announced on Friday at an official welcoming for German automaker Volkswagen to Canada to build what they say could be the largest EV battery plant in the world.

The plant in the southwestern Ontario city is expected to employ up to 3,000 people and create thousands of spinoff jobs. Volkswagen is investing $7 billion to build the plant, according to the Prime Minister’s Office.

The plant will be VW’s largest in North America and has the potential to be the largest VW plant in the world, said Frank Blome, the CEO of PowerCo, the Volkswagen subsidiary that makes batteries for electric vehicles.

“St. Thomas was the capital for trains and Volkswagen is the capital for automotive, so we fit well together,” Blome said on Friday. “Congratulations on outperforming the competition and bringing this factory to St. Thomas.”

The plant will have six production lines and make enough batteries for one million cars every year. VW has plans to make 25 new electric vehicle models in the coming decades, and most of their batteries will come from St. Thomas, Blome said.

Prime Minister Justin Trudeau credited Canadian workers for the largest auto deal in the country’s history and one of the largest industrial parks in all of North America.

Ontario Premier Doug Ford says politics took a back seat in order for federal and provincial officials to land the investment from Volkswagen. (Kate Dubinski/CBC)

“This deal is about workers. It will be worth $200 billion to the Canadian economy over the coming decade,” Trudeau said. He acknowledged that Conservative Leader Pierre Poilievre has come out against the deal, saying the $13 billion in federal subsidies is too much.

“Cleaner environment, a stronger, healthier happier workforce, partnerships with Indigenous peoples, that is how we build a strong economy of the future,” Trudeau said. “Mr Poilievre has said this is a waste of money…. Canada is about building a stronger future for the middle class and their children.”

Trudeau says the project will create up to 30,000 indirect or spinoff jobs.

The federal government agreed to give Volkswagen up to $13 billion in subsidies over the next decade, part of a deal to lure the company to build its first North American electric vehicle battery plant in southern Ontario.

“This is the largest auto investment in the province’s history. It’s a complete turnaround of the auto sector in three years. We’re back. Ontario is back,” said Vic Fedeli, the province’s minister of economic development, job creation and trade.

‘This is the future of our community’

Local business leaders also welcomed the investment. “This plant will dramatically shift the direction of where this community is going,” said Sean Dyke, CEO of the St. Thomas Economic Development Corporation.

“This is the future of our community.”

On top of the billions from Ottawa, Ontario will pay $500 million in “direct incentives” to VW. The province will also invest new funds in St. Thomas and surrounding communities.

Ontario Premier Doug Ford praised the deal and said it was important to put political differences aside to bring investment to the province.

A licence plate on a yellow VW reads, ‘St. Thomas Proud,’ at the unveiling of plans to build an EV battery plant in the southwestern Ontario city. (Kate Dubinski/CBC)

“The cars of the future will be made here in Ontario from start to finish, from the minerals in northern Ontario to the batteries here in St. Thomas, and they’ll be made by Ontario workers,” Ford said.

“We are revitalizing Ontario’s auto sector and making Ontario the auto powerhouse of North America.”

The announcement took place at the Elgin County Railway Museum, with vintage train cars looming over the politicians and executives.

Outside, striking Public Service Alliance of Canada members could be heard chanting as Trudeau praised the workers who will work in the plant.

“Canada has the advantage because of the workers themselves, people who know how to deliver exactly what the world wants,” the prime minister said.

 

VW deal a ‘game changer’ for Canada: Champagne

 

Innovation Minister François-Philippe Champagne says the $13-billion deal with the automaker is going to bring more jobs to St. Thomas, Ont., and represents a ‘generational opportunity.’

“This is more than a gigafactory. It’s an understanding that the future is going to be strong and bring for the people here and the people across the country.”

The plan is for the federal government to provide annual production subsidies to the German automaker and kick in funds for the massive factory in St. Thomas, which is estimated to be the size of 391 football fields, making it the largest factory in Canada.

‘We need to attract industry’

Billions in taxpayer dollars for a profitable automaker like Volkswagen doesn’t make sense at first glance, said one international business expert.

But it does once you consider that Canada is up against the United States’ Inflation Reduction Act, which offers billions in subsidies to companies to build south of the border, said Andreas Schotter, a professor of international strategy at the Ivey School of Business at Western University in London, Ont., and a former marketing sales controller for North America at Volkswagen.

 

Volkswagen to build EV battery plant in Ontario

 

Volkswagen has announced it’s building a major electric vehicle battery factory in St. Thomas, Ont. Slated to open in 2027, the factory is the first of its kind in Canada.

“That Inflation Reduction Act has really pushed up the need to open the pockets wider for attracting investments in green technology and battery plants. Otherwise, the plant would have been put in the United States or Mexico, but likely the U.S.,” he said.

“We need to attract industry,” Schotter said.

“Volkswagen is a global player. Attracting this plant here, from a Canadian perspective, makes sense. Price tag? You pay the price and you get them.”

 

Afternoon Drive6:12Agricultural Cost of a Volkswagen EV Plant

As the saying goes, once agricultural land is lost….it’s gone forever. This week we learned about 1,500 acres of land in St. Thomas, is slotted for industrial investment. Afternoon Drive Host Allison Devereaux spoke to Crispin Colvin, a Vice President from the Ontario Federation of Agriculture.

Bloomberg News first reported the federal subsidy amount. Sources with knowledge of the deal have confirmed the details of the contract with CBC News.

According to details of the deal, federal production support for the plant is expected to range from $8 billion to $13 billion over 10 years. Ottawa is also offering about $700 million in capital expense grants to Volkswagen through its Strategic Innovation Fund.

“This is a game changer for our nation,” Innovation Minister François-Philippe Champagne said, while fielding questions from reporters on Thursday.

 

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Stampeders return to Maier at QB eyeing chance to get on track against Alouettes

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CALGARY – Mired in their first four-game losing skid in 20 years, the Calgary Stampeders are going back to Jake Maier at quarterback on Saturday after he was benched for a game.

It won’t be an easy assignment.

Visiting McMahon Stadium are the Eastern Conference-leading Montreal Alouettes (10-2) who own the CFL’s best record. The Stampeders (4-8) have fallen to last in the Western Conference.

“Six games is plenty of time, but also it is just six games,” said Maier. “We’ve got to be able to get on the right track.”

Calgary is in danger of missing the playoffs for the first time since 2004.

“I do still believe in this team,” said Stampeders’ head coach and general manager Dave Dickenson. “I want to see improvement, though. I want to see guys on a weekly basis elevating their game, and we haven’t been doing that.”

Maier is one of the guys under the microscope. Two weeks ago, the second-year starter threw four interceptions in a 35-20 home loss to the Edmonton Elks.

After his replacement, rookie Logan Bonner, threw five picks in last week’s 37-16 loss to the Elks in Edmonton, the football is back in Maier’s hands.

“Any time you fail or something doesn’t go your way in life, does it stink in the moment? Yeah. But then the days go on and you learn things about yourself and you learn how to prepare a little bit better,” said Maier. “It makes you mentally tougher.”

Dickenson wants to see his quarterback making better decisions with the football.

“Things are going to happen, interceptions will happen, but try to take calculated risks, rather than just putting the ball up there and hoping that we catch it,” said Dickenson.

A former quarterback himself, he knows the importance of that vital position.

“You cannot win without good quarterback play,” Dickenson said. “You’ve got to be able to make some plays — off-schedule plays, move-around plays, plays that break down, plays that aren’t designed perfectly, but somehow you found the right guy, and then those big throws where you’re taking that hit.”

But it’s going to take a team effort, and that includes the club’s receiving corp.

“We always have to band together because we need everything to go right for our receivers to get the ball,” said Nik Lewis, the Stampeders’ receivers coach. “The running back has to pick up the blitz, the o-line has to block, the quarterback has to make the right reads, and then give us a catchable ball.”

Lewis brings a unique perspective to this season’s frustrations as he was a 22-year-old rookie in Calgary in 2004 when the Stamps went 4-14 under coach Matt Dunigan. They turned it around the next season and haven’t missed the playoffs since.”

“Thinking back and just looking at it, there’s just got to be an ultimate belief that you can get it done. Look at Montreal, they were 6-7 last year and they’ve gone 18-2 since then,” said Lewis.

Montreal is also looking to rebound from a 37-23 loss to the B.C. Lions last week. But for head coach Jason Maas, he says his team’s mindset doesn’t change, regardless of what happened the previous week.

“Last year when we went through a four-game losing streak, you couldn’t tell if we were on a four-game winning streak or a four-game losing streak by the way the guys were in the building, the way we prepared, the type of work ethic we have,” said Maas. “All our standards are set, so that’s all we focus on.”

While they may have already clinched a playoff spot, Alouettes’ quarterback Cody Fajardo says this closing stretch remains critical because they want to finish the season strong, just like last year when they won their final five regular-season games before ultimately winning the Grey Cup.

“It doesn’t matter about what you do at the beginning of the year,” said Fajardo. “All that matters is how you end the year and how well you’re playing going into the playoffs so that’s what these games are about.”

The Alouettes’ are kicking off a three-game road stretch, one Fajardo looks forward to.

“You understand what kind of team you have when you play on the road because it’s us versus the world mentality and you can feel everybody against you,” said Fajardo. “Plus, I always tend to find more joy in silencing thousands of people than bringing thousands of people to their feet.”

This report by The Canadian Press was first published Sept. 13, 2024.



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26-year-old son is accused of his father’s murder on B.C.’s Sunshine Coast

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RICHMOND, B.C. – The Integrated Homicide Investigation Team says the 26-year-old son of a man found dead on British Columbia’s Sunshine Coast has been charged with his murder.

Police say 58-year-old Henry Doyle was found badly injured on a forest service road in Egmont last September and died of his injuries.

The homicide team took over when the BC Coroners Service said the man’s death was suspicious.

It says in a statement that the BC Prosecution Service has approved one count of first-degree murder against the man’s son, Jackson Doyle.

Police say the accused will remain in custody until at least his next court appearance.

The homicide team says investigators remained committed to solving the case with the help of the community of Egmont, the RCMP on the Sunshine Coast and in Richmond, and the Vancouver Police Department.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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Metro Vancouver’s HandyDART strike continues after talks break with no deal

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, have broken off without an agreement following 15 hours of talks.

Joe McCann, president of Amalgamated Transit Union Local 1724, says they stayed at the bargaining table with help from a mediator until 2 a.m. Friday and made “some progress.”

However, he says the union negotiators didn’t get an offer that they could recommend to the membership.

McCann says that in some ways they are close to an agreement, but in other areas they are “miles apart.”

About 600 employees of the door-to-door transit service for people who can’t navigate the conventional transit system have been on strike since last week, pausing service for all but essential medical trips.

McCann asks HandyDART users to be “patient,” since they are trying to get not only a fair contract for workers but also a better service for customers.

He says it’s unclear when the talks will resume, but he hopes next week at the latest.

The employer, Transdev, didn’t reply to an interview request before publication.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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