Canada faces rising auto trade tensions with US
Ontario Premier Doug Ford said Stellantis has given him direct assurances that its Brampton Assembly Plant will not close, despite the automaker’s decision to move production of the Jeep Compass to the United States as part of a major shift in its North American strategy.
Ford told reporters he spoke with the company’s leadership after Stellantis confirmed plans to expand US manufacturing instead of proceeding with previously announced retooling investments in Ontario. “They are going to postpone it for a year. They are going to find a new model,” Ford said. He added that Stellantis intends to add a third shift at its Windsor facility, which could allow up to 1,500 of the 3,000 Brampton workers affected by the Compass transfer to relocate.
The automaker announced Tuesday it will invest US$13 billion over four years to expand US operations, including US$600 million to reopen the Belvidere Assembly Plant in Illinois, where Compass production will resume by 2027. The project is expected to create between 3,300 and 5,000 jobs in the United States.
Stellantis CEO Antonio Filosa told The New York Times the company’s US plans followed “very productive talks with the Trump administration,” which has imposed 25 percent tariffs on Canadian-built vehicles. Trump has said the tariffs are designed to shift auto production back to the US and has stated, “We don’t really want cars from Canada,” during trade discussions with Canadian officials.
The Brampton plant was idled in 2023 while Stellantis began retooling for future electric vehicle production, but those plans were paused earlier this year. Union leadership said the company’s latest decision puts thousands of Canadian jobs at risk. Unifor president Lana Payne said jobs “are being sacrificed on the Trump altar,” according to Global News.
The Canadian federal government has warned Stellantis that previously approved funding is contingent on domestic production commitments. Industry Minister Mélanie Joly wrote to Filosa, stating that if Stellantis does not meet its obligations in Canada, the government will “exercise all options, including legal.” In 2022, Ottawa and Ontario pledged C$1 billion to support Stellantis plant upgrades in Brampton and Windsor.
Prime Minister Mark Carney said the federal government is working with Ontario and Unifor “to protect Stellantis employees and to create new opportunities in and around Brampton.” Stellantis said Canada “is very important” to its long-term plans and confirmed ongoing investment in Windsor, where it is expanding battery and assembly production capacity.
“We have plans for Brampton and will share them upon further discussions with the Canadian government,” the company said.
