VOW Volkswagen AG

By Paul Vieira

OTTAWA--Canada said Thursday it pledged to provide Volkswagen AG with roughly $10 billion in financing over a decade to set up its first electric-vehicle-battery plant outside of Europe in the North American country.

The disclosure comes a day before Canadian Prime Minister Justin Trudeau and Ontario Premier Doug Ford are scheduled to head to St. Thomas, Ontario--a city of about 50,000, midway between Detroit and Toronto, that once was home to a large Ford Motor Co. vehicle-assembly plant--to officially reveal details of the Germany-based car maker's plant.

Volkswagen originally unveiled plans in mid-March to build the factory in southwestern Ontario, to take advantage of the country's rich raw materials--and possibly cash in on U.S.-legislated incentives aimed at encouraging green-tech investments in North America.

Details of the financial package Canada offered to Volkswagen were earlier reported by Bloomberg News and Canadian official confirmed that the details provided to Bloomberg News were accurate. Representatives for Volkswagen didn't immediately respond to a request for comment.

Canada presented a budget plan for the 2023-24 fiscal year last month, which covered the cost of Volkswagen's battery factory. However, at the time of the budget-plan presentation, a senior government official said details would only be released after an agreement is finalized with the car maker.

Also on Thursday, Mr. Trudeau said German President Frank-Walter Steinmeier would visit Canada next week.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

April 20, 2023 15:20 ET (19:20 GMT)

Volkswagen (TG:VOW)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024

Volkswagen (TG:VOW)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024