Upping the Cost! Volkswagen Battery Plant Subsidy May Cost Canada $16.3 Billion

Posted by David Logan

Date: June 16, 2023

Trudeau had previously said the plant would cost taxpayers $13.9 billion

Bloomberg News

Volkswagen AG may receive even more Canadian taxpayer support for a new battery plant than the $13.9 billion announced by Prime Minister Justin Trudeau’s government, a spending watchdog said.

Parliamentary budget officer Yves Giroux, in a report released Wednesday morning in Ottawa, pegged the federal government’s financial commitment to the German auto giant at around $16.3 billion over a decade.

Trudeau’s previously stated tally includes up to $13.2 billion in production subsidies and a $700 million grant for capital costs.

The $2.4 billion discrepancy comes from how Canadian subsidies may affect the company’s tax treatment compared to American incentives under the

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