The Canadian government is currently offering a wide-range of subsidies to encourage businesses to reduce its carbon footprint. These exemptions include technology discounts, grants, and tax credits to reduce the cost of environmental services. However, increasingly businesses are demanding ever more favourable terms and a lack of clarity on what other companies may have received is causing resentment amongst those who feel they have missed out.
Western companies are selling their Russian assets or handing them over to local managers, as a part of a broader corporate exodus from Russia, to comply with sanctions over the Ukraine conflict and deal with threats from the Kremlin. These moves are concerning, considering the fact that Russian companies and institutions are buying up these prize assets at bargain prices. Companies in the automotive, energy, food and beverages, banking, mining, and other sectors, including Carlsberg and Societe Generale, have secured deals to sell their businesses in Russia.
Ford says Ontario will 'put more money on the table' to save Stellantis plant in Windsor
CBC
23-05-19 16:08
Ontario Premier Doug Ford has said the province will increase its offer in a bid to save the planned Stellantis EV battery plant in Windsor. Stellantis is constructing the NextStar plant, which's set to employ 2,500 people and open next year. The announcement follows claims by Stellantis of delays in negotiations with the Canadian government. However, Ottawa maintains the plant's future is secure. Plans for a Volkswagen plant near St. Thomas, Ontario, are also receiving significant incentives, adding to the predicament around the Windsor plant's establishment.
Premier of Ontario, Doug Ford, has stated that Ontario is willing to give additional funds to Stellantis and LG Electronics Canada to keep them in Windsor, Ontario to prevent the halting of construction at their battery plant. The dispute began over funding, with both firms stating that the Canadian government has failed to match billions of dollars in incentives offered in the US through the Inflation Reduction Act. The exact cost of matching the IRA for either factory is unpredictable, due to the US subsidies being tied to how many battery cells and modules will be produced; however, it is likely to cost between CAN7bn and CAN13bn ($5.61bn and $10.45bn). The Canadian government have responded that Ontario needs to pay its “fair share” of the deal. Discussions will continue until a resolution can be made.
The Ontario government has pledged to improve its financial package to Stellantis-LG Energy Solution to keep its $5bn electric vehicle battery factory in Windsor. Ontario Premier, Doug Ford, did not disclose the amount offered to the companies this week, yet this increased financial package will theoretically aid in preventing the plant from being lured away to the US states. Reports suggest this is following President Biden’s Inflation Reduction Act offering automakers huge subsidies. The plant being constructed in Windsor is scheduled to employ up to 2,500 people and was supposed to be opened early next year.
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.
Ontario is increasing its financial contribution in order to prevent automaker Stellantis from abandoning the construction of an electric vehicle battery plant in Windsor, Ontario. Although Stellantis and LG Energy Solution publicised a plan to build a $5bn factory last year, recent reports indicate that this plan has been prolonged due to the Canadian federal government failing to comply with bilateral agreements. The CEOs of Stellantis and LG Energy Solution wrote to Prime Minister Justin Trudeau indicating that they have not received subsidies initially agreed on. Canada offered Volkswagen a capital contribution of $700m and a production final offer of $13bn for similar production incentives.
Canada's decision to create an EV supply chain might be a mistake, according to a Globe and Mail opinion piece. It argues that, on several fronts, supporting EVs is both irresponsible and crazed. For example, the author claims that despite being presented as planet-savers, EVs and hybrid cars play a part in an ever-expanding car culture, which harms cities and the environment alike. Furthermore, they argue that EVs do not solve wider environmental issues, as the supply chain is notoriously carbon-intensive, and building more and more power plants to service millions of EVs has knock-on environmental consequences too.
Canadian academic Marcel Schlaf wrote to The Globe and Mail newspaper calling on the country to spend over CAD14bn to develop ore resources, including the Ring of Fire deposit, so as to control the supply and value chain of metals from the get-go. “Do the feds or the province even know how much Stellantis is really worth?” asks correspondent Kevin Bishop, citing the vehicle maker's apparent weakness in EV development and market competition, suggesting it may not be viable long-term. Boudewyn van Oort of Victoria expounds that subsidies for electric vehicles are justified because, ultimately, they will replace hydrocarbons for the safety of the planet.
The Canadian government is caught in a bidding war with the US to fund an electric vehicle (EV) battery plant in Windsor, Canada. In a scramble to keep the planned $5bn Windsor plant in Canada, production subsidies matching those given by the US seem to be on the table. This follows the Federal Liberal government’s decision to allocate up to $13.2bn on subsidies to give VW’s first EV battery plant outside Europe a home in St Thomas, Ontario. The Trudeau government is not forthcoming regarding its negotiations with Stellantis or other companies. Initially it refused to confirm whether it matched Ontario’s $500m investment in the Stellantis battery plant earlier this year, later agreeing to match US production subsidies. Many economists are criticising this approach, saying it sets a terrible precedent and undercuts Canada’s built-in advantages in areas such as critical minerals, agriculture, forestry, and natural assets.
Fewer than one-quarter of surveyed British customers would invest in an electric car (EV) when they go on sale in the UK in 2025, according to data from insurer Aviva and The Daily Telegraph. However, the poll revealed that customers saw lower running costs and environmental benefits as positive factors of owning an EV, though more than 50% still believed the cars were less safe than petrol cars. Respondents also said the cost of EVs and the lack of charging points around the country were hampering adoption. The figures conflict with recent research carried out by the RAC Foundation and the International Council for Clean Transport, which found EV uptake rates could climb to one-third of new car sales by 2025 if the motivation was there for consumers.
The prevailing culture of subservience and powerlessness in British businesses benefits only shareholders according to doctoral student Daniel Chandler. Chandler claims that workplace democracy benefits both companies and employees at all levels and proposes that UK businesses allocate half their board seats to worker reps, something already established in Germany and France. Anti-establishment sentiments could be ameliorated by empowering workers, said Chandler. He recommends laws to limit the size of cooperative organisations to ensure worker investment remains and calls for a debate about power in UK companies. Chandler's ideas have been endorsed by figures such as economists Thomas Piketty, Amartya Sen, and Sir Angus Deaton.
Battery startup Gotion High Tech claims it will be the first firm to mass-produce an EV battery with a range of 1,000 km, double the present standard. The China-based firm unveiled its Lithium-Manganese-Iron-Phosphate (LMFP) technology at its annual technology conference, saying it is already suitable for everyday use, thanks to its life cycle of 4,000 charge-discharge cycles. The battery passed safety tests and could bring about a lifetime potential range of 4 million km, the company said. Mass production is due to begin in 2024 and the company is building a $2.3bn battery factory in the US, though there are no details of which EV the battery will fit.
