The historic $14-billion deal that will see Volkswagen establish its first manufacturing presence in Canada marks a significant milestone in the country's automotive industry. The negotiations spanned a year and involved discussions on both sides of the Atlantic Ocean. The decision to choose southwestern Ontario for Volkswagen's first battery plant outside Europe originated from a spontaneous call made by Industry Minister Francois-Philippe Champagne to the company's then-North American CEO, Scott Keogh, in early 2022. Despite Volkswagen's longstanding presence in Canada's automotive market, it had never manufactured vehicles in the country. However, with the global shift towards electric vehicles (EVs), automakers are increasingly prioritizing the production of EVs and their batteries, necessitating robust supply chains. Canada, recognizing the strategic importance of securing a foothold in the EV industry, has embarked on a concerted effort to attract investments and establish itself as a player in the battery manufacturing sector. This ambitious initiative has garnered support from provincial and municipal governments, reflecting a collaborative effort to position Canada as a key player in the rapidly evolving automotive landscape.
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