Key facts
- Stellantis is considering selling its Brampton, Ontario assembly plant, according to the Unifor union.
- The plant's retooling for Jeep Compass production was paused, with manufacturing moved to the U.S. due to tariffs.
- A 2022 contract with the Canadian government for up to $529 million in funding includes clauses preventing closure of the Brampton plant before 2035, with exceptions.
- Unifor is negotiating a new contract for workers at Stellantis's Ontario facilities, set to expire September 20.
- Stellantis had previously explored a partnership with China's Zhejiang Leapmotor Technology for EV production in Canada.
Stellantis is reportedly considering the sale of its Brampton, Ontario assembly plant, according to Unifor, the union representing Canadian autoworkers. The plant, which had been closed for retooling, was slated to begin producing the Jeep Compass in 2025. However, Stellantis paused these plans and shifted production to a factory in Illinois, citing tariffs imposed by U.S. President Donald Trump on Canadian goods.
Unifor is preparing to negotiate a new contract with Stellantis, covering the Brampton plant, Windsor Assembly Plant, and Etobicoke Casting Plant, with the current agreement set to expire on September 20. The union has previously expressed concerns regarding Stellantis's discussions with Chinese partner Zhejiang Leapmotor Technology about producing electric vehicles at the shuttered Brampton facility.
According to a contract obtained by CBC Windsor, the Canadian government provided Stellantis with up to $529 million in public funding, inked in 2022, to update its Brampton and Windsor facilities for electric vehicle production. This agreement includes clauses that bar Stellantis from closing the Brampton plant before 2035, unless circumstances beyond the company's reasonable control render the facility commercially unviable. The shift of Jeep Compass production to the U.S. has left approximately 3,000 workers at the Brampton plant without a vehicle to manufacture. Opposition Members of Parliament have questioned the government's allocation of taxpayer funds without sufficient worker protections, while federal officials assert that the funding included firm guarantees and that they would issue a notice of contractual default.