Stellantis revealed on Tuesday its plan to inject $13 billion US into expanding its production capabilities in the United States over the next four years. This decision involves relocating the assembly of the Jeep Compass model from Ontario to Illinois, sparking concerns about job implications in Canada.
Formerly known as Chrysler, Stellantis stated that the Brampton Assembly Plant in Ontario, where the Jeep Compass was initially set to be manufactured, will no longer host this production, with the move happening to the Belvidere Assembly Plant in Illinois.
The company anticipates that this substantial investment will result in a 50% surge in its U.S. vehicle output and the creation of over 5,000 new jobs. However, in Canada, the shift has raised worries about job losses, as Lana Payne, the national president of Unifor, expressed concerns about Canadian auto workers being negatively impacted.
The Brampton plant has been non-operational since early 2024 for retooling purposes to produce the next generation of the vehicle. Nonetheless, this progress was halted in February due to looming tariff threats. Payne urged the government to intervene and safeguard the jobs at stake.
Emphasizing the significance of protecting Canadian jobs, Payne highlighted the need for Stellantis to honor its commitments to Canadian workers, emphasizing that the authorities should not overlook the shift of jobs to the U.S. Mayor Patrick Brown of Brampton echoed similar sentiments, describing the decision as disappointing and a regression from commitments that had instilled hope in the local workforce.
The $13 billion U.S. investment by Stellantis in the U.S. coincides with challenges faced by the Canadian auto industry, including uncertainties and financial pressures stemming from U.S. President Donald Trump’s imposed tariffs aimed at boosting domestic vehicle production. Prime Minister Mark Carney attributed the decision to the current U.S. tariffs and potential future trade actions.
Carney assured that the federal government, in collaboration with the Ontario government and Unifor, is actively working to protect the Brampton employees and secure new opportunities for them. Ontario Premier Doug Ford expressed his disappointment with Stellantis and vowed to advocate tirelessly for the province’s autoworkers, emphasizing the need for clarity on the plant’s restart before any further provincial funding is considered.
In response to inquiries about the fate of the Brampton plant, a Stellantis spokesperson underscored the importance of Canada as a market and assured ongoing discussions with the Canadian government regarding future plans for Brampton. LouAnn Gosselin, Stellantis’s communication head in Canada, reiterated the company’s long-standing presence in Canada and its commitment to investments in the country.
Amidst reports about Stellantis’s investment plans, an auto industry analyst noted that the move was foreseeable considering the evolving tariff landscape in the U.S. Tom Venetis, editor of Octane magazine, emphasized the impact of tariff policies on Stellantis’s strategic decisions, prompting a reevaluation of its investment and manufacturing approaches.