Ontario Premier Doug Ford dismissed concerns about a two-year delay in Volkswagen’s planned battery plant near St. Thomas, which was originally set to open in 2027 but is now scheduled for 2029. The $7-billion project, part of an initial $13.2 billion government investment aimed at boosting the province's electric vehicle (EV) industry, will create 3,000 jobs once fully operational. Critics argue that this delay further undermines Ontario’s EV strategy, citing similar setbacks such as Honda’s decision to indefinitely postpone its own EV plant in Alliston and the loss of manufacturing jobs due to shifting automotive policies and market demands.
Written locally by qwen2.5:14b on 2026-09-25,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
In 2029, Volkswagen subsidiary PowerCo Canada will begin production at a $7-billion electric vehicle battery plant in St. Thomas, Ontario, two years later than initially planned. The delay aims to align with market demand and technological advancements. Despite concerns raised by critics about the implications for job creation, Premier Doug Ford remains unconcerned, citing thousands of construction jobs during the building phase. PowerCo Canada has contracted Canadian firm Ellis Don as general contractor, with over $10 billion in subsidies from various levels of government supporting the project. Other automakers like GM and Honda have scaled back or pulled out of similar commitments in Ontario, making Ford's optimism stand out amid economic uncertainties.
Written for “Volkswagen Plant Delay Ontario” on 2026-10-05,
grounded in this article and the 3 other(s) covering the same event.
Premier Doug Ford is brushing off the latest shock to Ontario’s electric vehicle strategy as Volkswagen delays the opening of a massive battery plant south of London by two years, a reaction critics fear is naive.
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critics → brush → reaction
“I’m not worried,” Ford said Friday after VW subsidiary PowerCo revealed the postponement until 2029 and said it has hired Canadian construction giant Ellis Don as general contractor of the $7-billion project near St. Thomas.
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it → ’m → Thomas
“What would make me worried is if they said they’re not building … that’s thousands of jobs for construction trades,” he told The Canadian Press and CityNews.
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he → make → Press
The plant, announced with fanfare in 2023 along with up to $13.2 billion in government aid billed as a “generational investment,” was to employ 3,000 workers at full production with an anticipated 30,000 spinoff jobs in production of battery components.
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plant → announce → components
PowerCo said the delay is to adjust to evolving market demand, technological advancements and the long-term strategy of its parent company, The Canadian Press reports.
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Press → say → company
With the postponement, PowerCo can get “the pacing right … to protect our long-term investment (and) support regional jobs,” said chief procurement officer Joel Karlsberg.
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Karlsberg → get → jobs
Automakers have been pulling back on EV plans in what Unifor, the union representing thousands of autoworkers, has called the “anti-EV policies” of U.S. President Donald Trump, such as the suspension of tax credits for buying electric vehicles and slowing the build-out of EV chargers in addition to tariffs on Canadian vehicles.
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Unifor → pull → vehicles
Honda, for example, announced in 2025 it was putting plans on hold for a $15-billion electric vehicle plant near Alliston, where it has made the Civic for decades.
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it → announce → decades
In May, that plan was scrapped indefinitely, crushing hopes for 1,000 more manufacturing jobs.
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plan → scrap → jobs
“If you look at the pattern, the delay comes first, and then there’s a shift,” said Liberal MPP Stephanie Smyth (Toronto—St. Paul’s).
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Smyth → look → pattern
Smyth questioned the reactions from Ford and Economic Development Minister Vic Fedeli, who said he is “thrilled” construction of the PowerCo plant is finally beginning.
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construction → question → plant
“It’s a way to sugar-coat what’s happening,” she said.
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she → ’ → ?
New Democrat Leader Marit Stiles said she is “optimistic” the plant will open under the new timeline but noted “the delay is not good news for workers who desperately need those jobs, for all the other spinoff industries that rely on that.”
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that → say → that
PowerCo’s move follows other blows to Ontario’s auto industry, including the loss of Jeep production at the huge Stellantis plant in Brampton to an American factory and the end of delivery van assembly at the General Motors Cami plant in Ingersoll, just east of London.
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move → follow → London
Fedeli said it had become clear that PowerCo’s original plan to open the St. Thomas plant was not going to open in 2027 because, although site preparation and infrastructure improvements like new sewers, water lines and roads were underway, actual construction of the factory had not begun.
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construction → say → factory
“If you’ve been following along with it, you realize that every day they don’t start construction is a day they don’t start production,” he said.
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he → follow → production
Automotive Parts Manufacturers Association president Flavio Volpe said the situation could be a lot worse.
uncertain
situation → say → ?
“Given the global headwinds, VW major restructuring dynamics and the trade war decisions made by others, this continued commitment to EV battery production is very good news,” Volpe wrote on social media Friday.
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Volpe → give → media
The Aporia
