Stellantis NV STLA-N +1.72%increase says it is moving production of the Jeep Compass to Illinois from Brampton, Ont., part of a US$13-billion plan to boost production in the United States.
The Brampton plant has been idle since 2023, and work on retooling for new vehicles halted in February, after U.S. President Donald Trump announced plans to lay 25-per-cent tariffs on imported automobiles.
The factory northwest of Toronto had been slated to produce the Jeep Compass when it reopened, but more than 3,000 unionized Stellantis employees remain on layoff while the plant’s future remains unclear.
Stellantis on Tuesday said it plans to boost U.S. production in the U.S. by 50 per cent over the next four years, producing five additional models and adding more than 5,000 jobs in Illinois, Ohio, Michigan and Indiana.
“As part of this announcement, we will move one model from Canada to the U.S.,” Stellantis said in response to questions from The Globe and Mail. “We have plans for Brampton and will share them upon further discussions with the Canadian government.”
Prime Minister Mark Carney said in a statement Stellantis’s decision is a “direct consequence” of U.S. tariffs and possible future trade actions. “Until a more certain trade environment for the North American Auto sector is established through the upcoming review of the Canada-United States-Mexico Agreement, decisions on new investments in the auto sector will continue to be affected.”
The head of Unifor, which represents Stellantis workers, called on the federal government to fight for the jobs.
“Canadian auto jobs are being sacrificed on the Trump altar,” Lana Payne said. “Stellantis cannot be allowed to renege on its commitments to Canadian workers, and governments cannot stand by while our jobs are shifted to the United States. Saving Brampton Assembly must now be this country’s top priority, sending a strong message to any corporation thinking they can take the same egregious actions.”
Brampton Mayor Patrick Brown said he was “deeply disappointed” with Stellantis’s move, which he called a “step backward” from the commitment the company made to workers and their families.
Ontario Premier Doug Ford said Stellantis has received no provincial funding for its Brampton plant and none will be provided until the company provides details on when the factory will restart.
“Stellantis has a duty to live up to their promise to Brampton autoworkers and continue with their allocation in Brampton,” Mr. Ford said.
In 2023, Stellantis’s chief operating officer at the time said the company was committed to the plant and assured the press and employees it would reopen with new models after the retooling. “I’ve given a reassurance in writing to the province, to the feds as well, that we absolutely are committed on the agreements we have with … Brampton,” Mark Stewart said.
In a statement on Tuesday, Stellantis provided no details on its plans for the plant. “We have been in Canada for over 100 years, and we are investing. We are adding a third shift to the Windsor Assembly Plant to support increased demand of all versions of the Chrysler Pacifica and the new Sixpack-powered Dodge Charger Scat Pack and R/T models. Canada is very important to us.”
Stellantis said its new U.S. investments include:
-US$600-million to reopen the plant in Belvidere, Ill., with production of the Jeep Compass and Cherokee by 2027, adding 3,300 jobs.
-US$400-million to move production of a truck previously planned for Belvidere to Toledo, Oh., by 2028.
-$100-milion to retool the Jeep plant in Warren, Mich., to add an electric vehicle and gas-powered SUV.
Mr. Trump says the import taxes on cars and other goods are intended to foster domestic manufacturing.
“We want to make our own cars,” Mr. Trump said in May. “We don’t really want cars from Canada. And we put tariffs on cars from Canada and at a certain point, it won’t make economic sense for Canada to build those cars.”
His trade policies upend decades of free trade in the auto sector that relies on an invisible border for efficient, just-in-time production. A car part typically crosses the border six or seven times before final assembly.
Auto parts are not subject to tariffs if they are compliant with the North American free trade agreement. But aluminum and steel face tariffs of 50 per cent, driving up costs for suppliers.
Ontario is also home to plants owned by Ford, General Motors, Honda and Toyota. Ford’s Oakville plants is idle but work is progressing on a retooling to make heavy-duty pickup trucks, the company has said.
Since Mr. Trump’s import taxes were put in place, there have been thousands of layoffs in Ontario’s auto sector, which mainly produces cars for the U.S market. Some companies have delayed new products and cancelled shifts.
Toyota has called the tariffs on its Ontario exports to the U.S. “unsustainable in the long term.”
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