Canada has promised Volkswagen AG subsidies that could amount to the equivalent of $10 billion.
This investment is for the construction of an EV battery plant in North America. So, Volkswagen may build its first Gigafactory outside of Europe, according to WirtschaftsWoche.
The amount of subsidies is huge. Investment in production alone is expected to range from 8 to 13 billion Canadian dollars over a 10-year period.
Prime Minister Justin Trudeau’s government says the subsidies are needed to secure Canada’s position in the automotive sector and ensure that the country is seen not only as a supplier of raw materials but also as a source of advanced manufacturing and clean technology. Naturally, new jobs play an important role.