Cleaner Tech
Canada Seen Taking 20 Years to Break Even on Volkswagen, Stellantis Subsidies
- Timeline exceeds government’s estimate for Volkswagen payback
- Payback still 7 years before Canada’s 2050 net zero pledge
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It will take about 20 years for Canada and its most populous province to break even on the billions of dollars in public money promised to lure Stellantis NV and Volkswagen AG to the country, a spending watchdog concluded.
Canada and Ontario have pledged a total of C$28.2 billion ($20.8 billion) to the two auto manufacturers to subsidize production at electric-vehicle battery plants through the end of 2032, with Prime Minister Justin Trudeau’s government footing two-thirds of the bill at C$18.8 billion and the province paying one-third, or C$9.4 billion.