Electric cars | Stellantis is investing more than $ 1 billion

(OTTAWA) The federal and Ontario governments are jointly investing more than $ 1 billion to help automaker Stellantis retool its Canadian electric vehicle plants.

Published on May 2

Mia Robson
Canadian press

Stellantis, a new company created a year ago by the merger of Fiat Chrysler and the French group PSA (ex-Peugeot-Citro├źn), is investing an additional 2.6 billion in its modernization projects in Ontario.

The federal government is investing $ 529 million and the Ontario government is investing $ 513 million. Prime Ministers Justin Trudeau and Doug Ford were in Windsor on Monday to make a statement.

This includes the creation of flexible assembly lines at the Stellantis plants in Windsor and Brampton for the production of battery electric and hybrid vehicles. Stellantis is also expanding its research and development center in Windsor to include a battery testing center and an electric vehicle research center.

Last month, the governments of both countries announced investments of $ 259 million each, including the transformation of the General Motors CAMI assembly plant in Ingersoll, which will be the first large-scale electric truck plant in Canada.

Federal Innovation Minister Francois-Philippe Champagne, who was also in Windsor on Monday, said it was an important vote of confidence in the Canadian automotive sector. The Minister felt that we are now seeing major changes in the automotive sector and that the Canadian industry is a major player.

Last March, the two governments also pledged nearly $ 190 million for Honda’s Alliston plant, including its modernization to produce electric vehicles.

With 500,000 jobs and a $ 16 billion contribution to Canada’s GDP, the automotive sector is an important part of Canada’s economy, but it is slowly adapting to electricity change.

Currently, only a few models of “zero-emission cars” are coming off the Canadian assembly line – the Chrysler Pacifica hybrid, manufactured at the Stellantis plant in Windsor, as well as the Lexus RX 450 and Toyota RAV4 hybrids, both manufactured by Toyota. plant in Cambridge, Ontario.

In March, Stellantis and LG Energy Solutions also announced a joint $ 5 billion investment to build Canada’s first large-scale electric vehicle battery plant in Ontario.

The Champagne Minister said on Monday that given the current uncertainty in supply chains and other global issues, Stellantis’ decision to turn to Canada for these investments is a great victory.

“For me, the fact that a company like Stellantis, which really had a choice to invest in Europe or North America, and which decided to do it in Canada, is a significant vote of confidence in our employees,” he said.

Stellantis would like half of its cars sold in North America to be electric by 2030.

Canada wants higher: Ottawa wants 20% of new vehicles sold to have zero emissions by 2026 and 60% by 2030. By 2035, Canada intends to ban the sale of new cars with internal combustion engines. In 2021, electric cars exceeded 5% of the total number of new vehicles purchased in the country.

The federal government will soon announce details of a mandatory sales target for dealerships, which will include annual sales quotas for electric vehicles – and financial penalties for those who fail to meet their targets.