The Conservative Party of Canada has urged the federal government to make public its agreements with Stellantis after the company’s recent decision to shift production of the Jeep Compass from Brampton, Ont., to a U.S. plant. The request was conveyed in a letter addressed to Prime Minister Mark Carney by opposition leader Pierre Poilievre.
In the communication, Poilievre raised concerns about the lack of transparency regarding the $10 billion pledged by the government to Stellantis and the company’s commitment to retaining jobs in Brampton. He emphasized the need for clarity on the protections and benefits secured for Canadian auto workers in the contracts with Stellantis.
A significant development in 2023 saw Nextstar Energy, a collaboration between Stellantis and LG, striking a deal with the federal and Ontario governments for a $5 billion electric vehicle battery plant in Windsor, Ont. The agreement entailed Stellantis potentially receiving up to $15 billion in performance incentives over a decade, with a majority of the funding coming from the federal government.
Earlier, a separate deal had been inked between Stellantis and the governments to allocate $3.6 billion for upgrades at the Brampton and Windsor assembly plants to support electric vehicle and battery production. During a press conference, Ontario Premier Doug Ford clarified that no provincial funding had been provided to Stellantis for Brampton as yet.
Poilievre reiterated the necessity for transparency in the contractual agreements between the government and Stellantis to ensure the interests of Canadian auto workers are safeguarded.
The call for increased scrutiny on the automotive sector by the federal Conservative leader includes a formal request for an emergency debate in the House of Commons and the reconvening of the Standing Committee on Industry and Technology. The party is pushing for a thorough examination of the challenges facing Canada’s automotive industry.
In response to Stellantis’ decision, Industry Minister Melanie Joly warned of potential legal action if the company fails to honor its commitments to maintain its operations in Canada, specifically in Brampton. Stellantis had previously employed around 3,000 workers at its Brampton plant before temporarily halting operations in 2023 to reconfigure for Jeep Compass production.
While Stellantis has indicated future plans for the Brampton facility, details remain undisclosed pending discussions with the federal government. The company’s reassessment of its product strategy was influenced by trade policies, including tariffs imposed on Canada’s auto sector by former U.S. President Donald Trump.
Efforts to ascertain the extent of financial support provided to Stellantis by the government are ongoing, with requests for funding details yet to be fully addressed. The federal government has disclosed some information on funding allocations for the Nextstar project, emphasizing the need to balance transparency with contractual and competitive considerations.