Stellantis revealed on Tuesday a $13 billion investment plan over the next four years to enhance its manufacturing capabilities in the United States. The decision includes transferring the production of the Jeep Compass model from Ontario to Illinois, raising concerns about job implications in Canada.
Formerly known as Chrysler, Stellantis stated that the Jeep Compass production, initially planned at the Brampton Assembly Plant, will be relocated to the Belvidere Assembly Plant in Illinois. The company anticipates a 50% increase in U.S. vehicle production and the creation of over 5,000 jobs as a result of the investments.
Unifor national president Lana Payne expressed discontent over the impact on Canadian auto jobs, emphasizing the sacrifices being made due to the shift of manufacturing operations. The Brampton plant has been inactive since early 2024 for retooling, which was halted in February amid tariff uncertainties.
Payne urged governmental intervention to safeguard jobs affected by the decision. Meanwhile, Brampton Mayor Patrick Brown expressed disappointment, highlighting the setback from the commitment to modernize the facility and provide a stable future for its workforce.
The $13 billion U.S. investment by Stellantis coincides with challenges faced by the Canadian auto industry, including uncertainty and financial strains resulting from U.S. tariffs imposed by President Donald Trump to boost domestic production. Prime Minister Mark Carney attributed the move to the current tariff situation and potential future trade actions by the U.S.
Carney assured collaboration with the Ontario government and Unifor to protect Brampton employees and explore new opportunities for them. Ontario Premier Doug Ford emphasized his support for autoworkers, vowing to advocate for their interests and demanding clarity from Stellantis on the plant’s reopening.
Stellantis affirmed its commitment to Canada, with plans for the Brampton site pending further discussions with the Canadian government. The company’s Canadian communications head, LouAnn Gosselin, emphasized Stellantis’ extensive history in Canada and reiterated its investment intentions.
Despite industry analysts foreseeing such moves in light of evolving trade dynamics, the decision underscores the impact of tariff policies on manufacturing strategies. Tom Venetis, editor of Octane magazine, highlighted the pressure on Stellantis to adapt its investment and production strategies in response to the changing trade environment.