Globe and Mail- Canadian pension funds exposed as battery maker Northvolt struggles to survive
Several Canadian pension funds have sizable financial exposure in the event of a bankruptcy filing by Northvolt AB, the Swedish battery maker that is burning through cash as growth in demand for electric vehicles lags expectations.
Fear not.
Oh civil servants.
Dear Leader will make good your losses.
At tax payers expense.
The Parliamentary Budget Officer (PBO) indicates government has spent $52.5 Billion on the electric car industry in the last four years.
https://www.pbo-dpb.ca/en/additional-analyses–analyses-complementaires/BLOG-2425-004–tallying-government-support-ev-investment-in-canada–bilan-aide-gouvernementale-investissement-dans-ve-canada
And it isn’t worth one thin dime.
Not even a plug nickel.
How much of that went to enrich friends of the Liberal party?
probably 60%
“Canada Pension Plan Investment Board, Investment Management Corp. of Ontario (IMCO), Ontario Municipal Employees Retirement System and Caisse de dépôt et placement du Québec participated in US$2.3-billion in convertible debt financings for Stockholm-based Northvolt, joining major automakers and financial institutions to support the European battery hope as its future looked bright. OMERS also bought an undisclosed number of Northvolt shares in 2021.”
So, all government pension plans, who went full in on “In 15 years, more electricity will be sold for electric vehicles than for light.” and couldn’t see that it’s yet more government malinvestment because it ignores individual choice.
And the debt is “convertible” which means it will be converted in to “worthless equity” under the terms of the loans. Good thing the CPPIB, IMCO, OMERS and Caisse will be subjected to the “buy-in” when the company fails.
@TurdholeDominion
The CPP has also “invested” in wind turbine and solar panel technology. Those will be the next dominoes to fall.
Amazing how so many uninformed/uneducated people can make massive investment decisions, all based on television news hype.
Is this why Chrystia Freeland’s vibrator went off the other day during a presser?
I could have sworn I heard it yell “Riccola!”
Ca. and CA have so much in common … we have the geniuses at CALSTRS State Employee Pension fund heavily invested in offshore wind farms, Tonapah solar salt tower, and are STILL writing off all their 2008 JUNK real estate “investments”. Yeah … the system is underfunded and going broke.
Shocking!