Stellantis NV is pausing work on the next generation Jeep Compass sport utility vehicle and all activities at its assembly plant in Brampton, Ontario.
“As we navigate today’s dynamic environment, Stellantis continues to reassess its product strategy in North America,” spokesperson Jodi Tinson said Thursday in an emailed statement. The halt doesn’t change previously announced investment plans for the Canadian factory, the company said.
The plant in Brampton, near Toronto, employed about 3,000 workers and has been under a retooling program to build electric and gas-powered vehicles for the Jeep brands. It’s expected to return to full capacity once that work is complete.
Stellantis is examining its strategy after Chief Executive Officer Carlos Tavares departed in December under pressure from the board, which had lost patience with declining US sales. Last month, the automaker said it will build a new midsize pickup at its plant in Belvidere, Illinois, which had been closed under Tavares.
The “unexpected announcement” in Brampton is a matter of “grave concern,” according to Unifor, the union representing auto workers at that facility. It raises doubt about the timeline of the retooling process, the union said.
“The chaos and uncertainty plaguing the North American auto industry, which is under the constant threat of tariffs and a dismantling of EV regulations from the US, are having real-time impacts on workers and corporate decisions,” said Unifor President Lana Payne. “The threats are also dangerous to our economy and to Canadian jobs.”
Unifor said the impact of a delayed start at Brampton would have spillover effects on local parts suppliers tied to vehicle production, including thousands of union and non-union workers.
Canadian Industry Minister François-Philippe Champagne said in a social media post that the government is in contact with Stellantis and Unifor. “We will make sure that Stellantis honors its commitments and follow through on its plans for Brampton.”
Stellantis announced in May 2022 that it planned to invest billions in retooling its plants in Brampton and in Windsor, Ontario, to build electric vehicles. It has since received further pledges of financial support from the governments of Canada and Ontario — including huge subsidies for an electric vehicle battery plant in Windsor. At the time the latter deal was announced in 2023, it was projected the battery factory would receive as much as C$15 billion ($10.6 billion) in taxpayer assistance.
Stellantis confirmed the Compass move to Brampton in November 2023.
US President Donald Trump has threatened 25% tariffs on most Canadian products imported by the US and, in recent days, has also promised 25% tariffs specifically on automobile imports. If carried out, tariffs would upend the highly integrated North American vehicle supply chain.
Trump aim is to drive auto manufacturing investment to the US. “We don’t want their cars, we want to make the cars in Detroit,” Trump told Fox News earlier this month. The number of Canadian-made vehicles imported by the US has dropped by about 50% in the past 10 years.
With assistance from Brian Platt and Chester Dawson.
Randy Thanthong-Knight and Gabrielle Coppola, Bloomberg News
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