A majority of Canadians support Prime Minister Justin Trudeau’s decision to give an enormous subsidy to Volkswagen AG to build a battery factory in the country, according to a new poll.
(Bloomberg) — A majority of Canadians support Prime Minister Justin Trudeau’s decision to give an enormous subsidy to Volkswagen AG to build a battery factory in the country, according to a new poll.
The Nanos Research survey for Bloomberg News found support is highest in the crucial electoral battlegrounds of Ontario and Quebec — a likely explanation for why Trudeau’s chief rival, Conservative Leader Pierre Poilievre, has stayed largely silent on the deal despite being an avowed fiscal conservative.
Last month, it was revealed Trudeau’s government negotiated an unprecedented agreement to provide up to C$13 billion ($9.7 billion) in production subsidies over the next decade if Volkswagen built its plant in Canada.
Trudeau told Bloomberg that the subsidy was necessary for Canada “to step up and make sure that we’re competitive” with the clean-tech tax incentives being offered in the US through the Inflation Reduction Act. But he also warned that other battery plants in Canada may not get the same deal.
The Nanos poll found 54% of Canadians agreed with the government’s position that the Volkswagen subsidy is worth it “because it will bring jobs and economic benefits to Canada.” A further 30% of Canadians said the money would have been better spent on other priorities, while 16% were unsure.
The plant will be built in Canada’s manufacturing heartland in southern Ontario, the country’s most populous province. Support for the deal was 59% in Ontario and roughly the same in neighboring Quebec. By contrast, support was only 42% in the western prairie provinces, which are dominated electorally by the opposition Conservative Party.
If Poilievre is to defeat Trudeau in the next election — which could come any time in the next two years — he will have to make inroads in Ontario and Quebec, potentially explaining why he’s shied away from slamming the Volkswagen deal.
The battery plant, the German auto giant’s first outside Europe, will cost C$7 billion to build and have the capacity to produce a million batteries a year. The government estimates it will create as many as 3,000 direct jobs and spin off huge economic benefits in the region for decades.
Nik Nanos, chief data scientist at Nanos Research, said the survey results suggest Canadians are willing to support such generous subsidies despite broader concerns about the strength of the economy. “It may very well be that they see electric cars as a good investment, which well positions Canada both in terms of manufacturing and a greener economy,” Nanos told said by email.
In a separate question, the poll found Canadians are split on the broader issue of the government handing money to corporations to help them reduce emissions. About 50% either opposed or somewhat opposed corporate subsidies to help Canada reach its climate targets, while 47% either supported or somewhat supported that practice.
The highest level of support was in Quebec, where 57.6% answered favorably. The lowest was found again in the prairies, where just 35.5% were in favor.
Nanos surveyed 1,080 Canadians between April 30 and May 3. The poll has a margin of error of 3 percentage points, 19 times out of 20.
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