Welcome to Ontario, politicians tell VW at St. Thomas battery plant unveiling

The federal and provincial governments are officially welcoming German auto maker Volkswagen to Canada, unveiling Friday what will be a massive plant in St. Thomas, Ont., that will employ up to 3,000 people. 

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 will make enough batteries for one million cars. 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.

"This deal is about workers. It will be worth $200 billion to the Canadian economic 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 work force, 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 Fideli, the province's ministry of economic development, job creation and trade.

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.