A major setback at Volkswagen’s $7-billion electric vehicle manufacturing plant in southwestern Ontario has been attributed to a slowdown in demand for electric vehicles, according to PowerCo Canada. The company, a subsidiary of the German automaker, acknowledged that shifting market conditions are contributing to construction delays at the facility. Industry observers are watching closely as the project faces uncertainty amid broader questions about consumer adoption of EVs. The announcement raises concerns about the timeline and financial implications for one of Canada’s largest automotive investments.
PowerCo Canada, a Volkswagen subsidiary, said the delay at the $7-billion factory in St. Thomas, Ont., is due partially to a downshift in market demand on electric vehicles.
