Brampton Production in Peril as Stellantis Invests $13 Billion in U.S. Production

Stellantis this week announced its biggest single investment in American production ever, but the move appears to be coming at a cost for Canada’s automotive sector. The automaker admitted that it will be moving a model out of its Canadian plants and into a U.S. plant.

Although it did not specify which, Canada’s automotive workers union, the prime minister, and the mayor of Brampton have acknowledged that production of the Jeep Compass is the model that will leave. Although the Brampton plant has been idle for 18 months, it was supposed to be the site of the small crossover’s assembly. Now, Stellantis says it will invest US$600 million to reopen its plant in Illinois, where the Compass and the Jeep Cherokee will be produced.

The decision comes just a week after U.S. President Donald Trump said there was a “conflict” between his country and Canada over jobs in the auto sector. In a statement yesterday, Prime Minister Mark Carney blamed his counterpart’s tariff policies for Stellantis’ move.

“Today’s decision is a direct consequence of current U.S. tariffs and potential future U.S. trade actions,” Carney wrote. “Until a more certain trade environment for the North American auto sector is established […], decision on new investments in the auto sector will continue to be affected.”

While Canada and its trading partners work on an upcoming review of the Canada-United States-Mexico Agreement (CUSMA), Carney said that Ottawa is working with Stellantis to protect workers in Brampton and to create new opportunities for them.

He added that the Canadian government has “made clear that we expect Stellantis to fulfill the undertakings they have made to the workers of Brampton.” Previously, the automaker committed to modernizing and retooling the facility, which is operated by 3,000 workers.

In a statement to the Toronto Star, Stellantis said that it is continuing to invest in Canada, that it is adding a third shift to its Windsor Assembly Plant to support increased production of the Chrysler Pacifica minivan and the Dodge Charger Scat Pack.

The automaker added that it has future plans for Brampton, though it was not ready to share them because it is still in discussions with Ottawa. The cryptic comment was met with scepticism by figures in the Canadian automotive sector, like Flavio Volpe, head of the Automotive Parts Manufacturers Association.

“I hope those plans include a vehicle,” Volpe told the Star. “Anything less than a vehicle is going to mean less work for parts companies, for tool and die makers, and for workers across the Canadian industry.”

Stellantis’ decision to invest in American production comes just a week after the Canada-U.S. trade conference. Following the event, U.S. commerce secretary Howard Lutnick stated that Canada must accept that in the White House’s view “America is first, and Canada can be second.”

The U.S. and Canada have a long history of cooperation in the auto sector. The sector has become an important factor for Canada’s economy, and has supported easier trade across the border, which has benefited workers and companies in both countries.