Description: The Government of Canada is offering $13 billion in subsidies to Volkswagen to build the first auto battery plant in North America. The federal assistance is to be delivered through tax subsidies, contingent upon Volkswagen meeting agreed upon output targets. VW’s planned plant in St. Thomas, Ontario, is slated to open in 2027. It’s a massive project, meant to cover an area of 350 football fields, while employing 3,000 workers once operational. Volkswagen is spending $7 billion on the project.
Date: April 21, 2023
1) Have you ever driven an electric vehicle? Do you aspire to purchase one when you graduate?
2) How do you feel about the Government of Canada providing assistance to this venture?
3) On page 1-6 of Wiley’s Managerial Accounting: Tools for Business Decision-Making we read about Volkswagen and its emissions scandal. What was the nature of this scandal and what sort of controls would you recommend a company develop to protect against such an occurrence?