Trudeau and Ford reveal $65 million investment in Goodyear’s $575 million plant expansion
The federal and Ontario governments have announced a combined investment of nearly $65 million to support the expansion of Goodyear Tire’s manufacturing plant in Napanee, Ontario.
Goodyear’s $575 million project aims to enhance tire production for electric vehicles (EVs) and all-terrain vehicles, according to an Aug. 12 government press release. The federal government will contribute over $44 million in funding for the project, while Ontario is adding $20 million.
The federal government says the expansion project is expected to help Goodyear’s Napanee plant achieve net-zero emissions by 2040, contributing to the federal goal of a net-zero economy by 2050.
Prime Minister Justin Trudeau said the Goodyear plant expansion will help create jobs during an Aug. 12 press conference. The project is expected to generate 200 new jobs by 2027 for a total of more than 1,000 jobs, according to the government.
Ontario Premier Doug Ford, who attended the press conference, highlighted investments in the EV sector, saying “Goodyear Canada’s investment is another significant boost to Ontario’s growing electric vehicle sector, building on the billions of dollars that have been invested in the sector over the past four years.”
In recent years, the federal government, along with the provinces of Ontario and Quebec, has committed more than $50 billion in subsidies to automakers for EV and battery manufacturing in Canada. This significant investment includes support for major auto companies like Volkswagen, Stellantis, and Honda.
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A September 2023 report from the Parliamentary Budget Officer (PBO) said that the federal and Ontario governments have pledged $28.2 billion to support Volkswagen and Stellantis-LG Energy Solutions. In 2022, Ontario also announced $131.6 million to Honda Canada for an Ontario plant for the production of electric and hybrid vehicles.
Additionally, the federal and Quebec governments have announced up to $4.6 billion in subsidies for the Swedish EV battery company Northvolt, according to another PBO report.
One of the subsidized EV battery manufacturers has recently halted building a plant in Ontario due to declining demand for EVs.
In a July 26 press release, Umicore Rechargeable Battery Materials Canada Inc. said it would take “immediate action” to deal with the “recent significant slowdown in short- and medium-term EV growth projections affecting its activities.” This includes delaying the construction of its battery materials plant in Loyalist Township, about 25 kilometres northwest of Kingston.
Umicore’s project, estimated to cost nearly $2.8 billion, received funding from both the federal and Ontario governments. The federal government invested up to about $551 million, while Ontario contributed around $425 million, according to an October 2023 press release.
