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Even though Volkswagen is the second-largest automaker in the world, it does not have plants in Canada. Now the federal government is rewarding Volkswagen for failing to create jobs here.
Ottawa (24 April 2015) — The Conservative government is providing Volkswagen AG with $525 million in financing to expand factories in Mexico and the Southern United States. The money is being provided by Export Development Canada. No conditions are attached to the financing.
"Chance to be considered" only guarantee tied to Conservative funding
In exchange for giving Volkswagen $525 million to create jobs nowhere near Canada, what do Canadians get? Not a guarantee of work. Instead, all Canadian companies get is a “real chance to be considered” for contracts to supply parts.
Should a Canadian-based firm actually get a contract with Volkswagen, there is still no guarantee of more jobs in Canada. According to the Automotive Parts Manufacturers’ Association, there are “55 Canadian auto-parts companies with 110 facilities currently operating in Mexico.” If a company with a plant in Mexico wins a contract to supply Volkswagen plants in Mexico or the Southern United States, it’s easy to guess where the new jobs will be created.
Even though Volkswagen is the second-largest automaker in the world, it does not have plants in Canada. Now the federal government is rewarding Volkswagen for failing to create jobs here.
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