A major setback at Volkswagen’s $7-billion electric vehicle plant in Ontario has been attributed in part to a slowdown in demand for electric vehicles, according to PowerCo Canada. The company acknowledged that shifting market conditions are contributing to construction delays at the facility. Industry analysts will be watching closely as the project faces further uncertainty amid broader questions about consumer interest in 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.
