53 Comments
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Sandi J Horton's avatar

Sounds like a sound investment for Canada! My guess is we will see more VW's on the road!

Fred Ferguson (GeezerWise)'s avatar

You might be right, Sandi... and I wouldn’t complain one bit. 😄

When Volkswagen drops billions into your backyard, it’s not just jobs and factories… it’s loyalty.

People tend to buy what’s built at home.

“Made here” hits different.

Plus, if they’re building here, servicing here, hiring here…

that’s money cycling right back into our own communities.

So yeah…

more VWs on the road might just be the bonus round.

I’ll take a few extra maple-flavoured hatchbacks cruising around. 🇨🇦🚗

Aocm🇨🇦's avatar

I love my made-in-Mexico Jetta, just sayin’ 😊

Fed Up With Fraud's avatar

VW Audi are brilliant cars fantastic vehicles in the snow. ⛄️

greatwhitenorth's avatar

Good News!!!

Joanne Pettis 🇨🇦's avatar

I’m thinking my next car may be a VW.

Fred Ferguson (GeezerWise)'s avatar

Honestly? Same here Joanne.

My family has a lot of people who worked at GM so I purchased GM but in the last few years I'm off that loyalty train. When Volkswagen drops $7 billion to build jobs on our side of the border instead of chasing U.S. drama…

That’s not just a car.

That’s a thank-you note with wheels.

Might as well drive the companies that actually show up for Canada.

Grant Rowson's avatar

Some of this, though, depends upon which country’s submarines we buy. Both the German and Korean investments, in part, are tied to the military decision.

having said this, your analysis is still largely relevant. Even the country that loses the sub deal would still see positive reasons for doing some significant investment here.

Fred Ferguson (GeezerWise)'s avatar

Good point, Grant... and you’re absolutely right to flag the submarine angle.

The military contracts absolutely sweeten the pot. Big defence deals tend to drag private investment along behind them like a tow rope.

But here’s the part I keep coming back to…

Nobody parks $7 billion just to be polite.

Even without the sub decision, the math still works...

stable country

skilled workforce

cheap energy

solid trade access

and a neighbour south of us acting like a reality show

If I’m Volkswagen or Hyundai, Canada looks less like a gamble and more like insurance.

The subs might steer who wins more…

but the bigger story is that global companies are quietly deciding Canada is the safer bet.

And that’s a pretty nice problem to have.

Carol-Ann Lamothe's avatar

Got to love it!!

OlderMaybeWiser's avatar

Here’s the punchline, hidden in the middle of the diatribe:

“Ottawa even rolled out a $3.1 billion auto strategy to attract manufacturing.”

More government subsidies for a product that nobody wants (EV is dead, news flash).

Have we learned nothing from Stellantis, Northvolt, Lion Electric…. $50 BILLION gone!

Fred Ferguson (GeezerWise)'s avatar

If EVs were dead, companies wouldn’t be spending billions building plants.

Corporations lie sometimes… but they don’t hallucinate $7 billion investments.

OlderMaybeWiser's avatar

Build plants that produce little or nothing at all. Then close down after they take the money and run.

Craig Smith's avatar

Don’t confuse what the luddites in the US are doing with what is happening in the majority of the world. In 2025 EV sales were over 20 million units, an increase of 20% over 2024. Another way Trump is actually making America less competitive.

Fred Ferguson (GeezerWise)'s avatar

Exactly.

The world’s moving forward whether the U.S. wants to or not.

siegfried59's avatar

Ah, another fossil fuel dinosaur……

Douglas Carlton's avatar

And that plant would not have been in California or Minnesota. It would have been in Tennessee, Mississippi or Alabama. I do love a good fuck around and find out story.

Fred Ferguson (GeezerWise)'s avatar

Industrial investments are rarely accidental.

They go where policy, infrastructure, and economics line up... and that’s what makes these shifts interesting to watch.

Richard's avatar

So much winning yet again.

Fred Ferguson (GeezerWise)'s avatar

Yeah…

Funny how all this “winning” keeps landing north of the border.

Factories here.

Jobs here.

Investment here.

If this is losing, I’ll take two more losses please.

Fed Up With Fraud's avatar

People don’t want drama they don’t need a cliffhanger at the end of every episode. This is real life with real consequences. Give me safe and reliable every single day of the week.

Fred Ferguson (GeezerWise)'s avatar

Competence should feel dull.

That’s usually how you know it’s working.

Fed Up With Fraud's avatar

Competence feels safe, orderly and logical it taps into our basic human instincts from infancy.

Jodi Devey's avatar

and i don’t blame them one fucking bit. we don’t deserve them, but canada does. fuck america.

Fred Ferguson (GeezerWise)'s avatar

I’m not anti-America… just pro-competence.

Countries rise or fall on their choices.

Jim Fuller's avatar

Is America great yet?

Desdemona's avatar

For now, I believe that this is a MOU, but it's better than nothing. Here's hoping that it becomes a reality.

Fred Ferguson (GeezerWise)'s avatar

You’re right, Desdemona... it’s “just” an MOU for now.

Basically corporate-speak for “we’re serious… but lawyers first.”

Not a shovel in the ground yet.

But here’s why I still like it…

Companies don’t draft MOUs for fun.

They do it after months (sometimes years) of spreadsheets, site visits, and risk math.

It’s the engagement ring before the wedding.

Nothing’s guaranteed... but nobody buys the ring unless they’re planning to show up.

Given how jumpy global investment is right now, even getting to this stage says a lot about how Canada’s being viewed.

Cautiously optimistic feels about right. 👍

EarAche - Eric J's avatar

Win- Win Great for Canada ! ! ! Great for VW ! ! ! all tRUmpffff and its controllers fault.

Neolithic's avatar

I think the VW battery plant is among the most important investments in Canada right now. But I do think it needs to be called out, its purpose is to supply a Tennessee VW assembly plant. Our Nations' autosectors remain heavily intertwined. Perhaps VW will open an assembly plant in Canada in the future, but I am aware of no such plans today.

Fred Ferguson (GeezerWise)'s avatar

Fair point.

But even supplying U.S. plants still means Canadian jobs, Canadian payroll, Canadian tax base.

I’ll take being the factory over being the customer any day.

Neolithic's avatar

I certainly agree. I'm just saying if you want to buy a car with a Canadian Battery, you will be buying an American car. A lot of people take issue with buying an American car right now, even though a lot of Canadian works have jobs supplying those assembly plants.

Again, I think the battery plant is an important investment. It can also supply batteries to Europe, potentially, and it feeds demand for the growing ecosystem, as you draw attention to.

But this plant is hardly a new announcement, and it is very much meant to feed the American market, so I do think it is mistaken to frame this as VW picking the Canadian economy over the American, so much as picking where particular supply chains are strongest for specific parts in a wider north American strategy.

Fred Ferguson (GeezerWise)'s avatar

Fair point on assembly... a lot of those batteries will likely end up in vehicles built in the U.S.

But where the real value sits isn’t final assembly... it’s upstream in the battery supply chain itself. Mining, refining, cell manufacturing, engineering, and long-term contracts. That’s where the jobs and leverage are.

So it’s less “Canada vs America” and more “Canada owning a critical piece of the North American ecosystem.”

If you control the heart, it doesn’t really matter where the wheels get bolted on.

Neolithic's avatar

I largely agree.

Bobsuruncle's avatar

Great news indeed

Fred Ferguson (GeezerWise)'s avatar

Agreed.

I’ll take “great news” over doomscrolling any day. Nice to see Canada on the winning side for once.

Pauline Svenson's avatar

Very encouraging news during our economy turmoil. 👍

Fred Ferguson (GeezerWise)'s avatar

It really is.

With all the noise and nonsense lately, it’s nice to see something solid and practical for a change... real factories, real jobs, real paycheques.

Not politics.

Not hype.

Just work.

We could use more of that. 👍