Feds, Ontario ante up millions to produce electric vehicles

The federal and Ontario governments promised Thursday to pour hundreds of millions of dollars into an auto plant for the mass production of electric vehicles and the batteries that power them - a plan they said would help the country’s automotive industry stay competitive and recover from the COVID-19 pandemic.

Ottawa and the province said they will each chip in $295 million to support production at Ford Motor Co.’s plant in Oakville, Ont. The funding is part of a three-year agreement worth nearly $2 billion that was announced last month between the automaker and Unifor, the union that represents autoworkers in Canada.

Prime Minister Justin Trudeau and Premier Doug Ford called the joint investment an important step in building the next generation of Canada’s auto industry as it increasingly shifts towards green technology.

The agreement will have a significant impact on the industry’s supply chain, including auto parts suppliers in the region, Trudeau said from the company’s connectivity and innovation centre in the Ottawa suburb of Kanata.

It will also secure 5,000 jobs throughout the automotive industry at a time when the COVID-19 pandemic has prompted workers everywhere to worry about their livelihood, he said.

“The market for electric vehicles will grow in the future and Canada has the talent to be a global leader in making batteries for electric vehicles, for electrification, and clean technologies,” the prime minister said.

“For our auto sector, for our environment, this is a win-win.”

The premier, who spoke at the Oakville plant with representatives of the motor company and the union, said the deal “marks a new chapter” for Ontario’s auto industry.

“We’re laying the groundwork for the longterm recovery and prosperity of our province,” Ford said.

The Oakville plant employs 3,400 Ford workers and Unifor president Jerry Dias has said retooling the plant to produce electric vehicles will save 3,000 of those jobs.