It is believed that Ottawa and Queen’s Park are under pressure to put together a more considerable subsidy for the plant as companies halted construction on Monday to obtain further subsidies that would match those offered to Volkswagen, which has a similar investment plan in St. Thomas. At present, the Canadian government’s production tax credits for Volkswagen in Canada is about $13.2 billion, which is the same amount that the carmaker could’ve received if they went to the United States. It is thought the tax deal for Volkswagen was a significant factor in luring the plant to Canada, which some say has helped secure Canada’s car industry for future production in electric vehicles.
Stellantis, which owns Jeep, Chrysler, Fiat, and Dodge, has declined to comment on the funding arrangement thus far. It should be noted that President Biden plans to provide US automakers a $100 billion overhaul towards electric vehicles to persuade reluctant American drivers to abandon petrol automobiles. This plan includes greater investments in charging stations and robust tax incentives.