The Conservative Party of Canada has urged the federal government to make public its agreements with Stellantis, following the company’s decision to shift production of the Jeep Compass from Brampton, Ont., to a U.S. plant. The request was conveyed in a letter sent to Prime Minister Mark Carney by opposition leader Pierre Poilievre.
Poilievre questioned the transparency of the government’s dealings with Stellantis, highlighting the lack of information provided to Canadian auto workers regarding the $10 billion pledged to the company. In 2023, Nextstar Energy, a collaboration between Stellantis and LG, secured a $5 billion deal with federal and Ontario governments for an electric vehicle battery plant in Windsor, Ont., entitling Stellantis to up to $15 billion in performance incentives over a decade, with a majority funded by the federal government.
A previous agreement involved $3.6 billion allocated to upgrade Stellantis’ Brampton and Windsor assembly plants for electric vehicle and battery production. Poilievre emphasized the necessity for clarity on the protections, or lack thereof, for Canadian auto workers in the government’s contracts with Stellantis.
The Conservative leader’s call for transparency coincided with a proposal for an emergency debate in the House of Commons on the state of Canada’s automotive sector. Industry Minister Melanie Joly warned Stellantis of potential legal action if it fails to honor commitments to Canada, including maintaining operations in Brampton.
Stellantis had initially planned to retool its Brampton plant for Jeep Compass production but halted the process in 2023 amid trade tensions with the U.S. The company has assured the government of continued plans for the Brampton facility but disclosed no further details.
Efforts to obtain details on the funding provided to Stellantis by the federal government have been met with limited transparency. As of March 31, 2024, $268 million of the committed $500 million for the Nextstar project had been disbursed by the federal government, with funding also sourced from the Strategic Innovation Fund.
Disclosure of specific funding amounts for battery companies’ production support is restricted to protect contractual obligations and commercial interests, as well as to preserve competitive advantages in the market.