Financial Post

Trudeau's massive $13-billion subsidy to Volkswagen wins support in poll

Majority of Canadians support decision

Author of the article:

Bloomberg News

Brian Platt

Published May 12, 2023 • Last updated 13 hours ago •

3 minute read

Prime Minister Justin Trudeau makes a Volkswagen electric battery plant announcement at the Elgin County Railway Museum in St. Thomas, Ont., Friday, April 21, 2023. PHOTO BY TARA WALTON/THE CANADIAN PRESS

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A majority of Canadians support Prime Minister Justin Trudeau’s decision to give an enormous subsidy to Volkswagen AG to build a battery factory in the country, according to a new poll.

The Nanos Research survey for Bloomberg News found support is highest in the crucial electoral battlegrounds of Ontario and Quebec — a likely explanation for why Trudeau’s chief rival, Conservative Leader Pierre Poilievre, has stayed largely silent on the deal despite being an avowed fiscal conservative.

Last month, it was revealed Trudeau’s government negotiated an unprecedented agreement to provide up to $13 billion in production subsidies over the next decade if Volkswagen built its plant in Canada.

Trudeau told Bloomberg that the subsidy was necessary for Canada “to step up and make sure that we’re competitive” with the clean-tech tax incentives being offered in the United States through the Inflation Reduction Act. But he also warned that other battery plants in Canada may not get the same deal.