Stellantis is reportedly in preliminary discussions to assemble electric vehicles (EVs) from its Chinese partner, Leapmotor, at the dormant Brampton, Ontario plant. This facility, which has been idle for over two years, was originally slated for a $500+ million retooling to produce Jeep Compass models, backed by substantial Canadian government subsidies.
The proposal has ignited strong opposition from key stakeholders, including Ontario Premier Doug Ford and Unifor, the union representing approximately 3,000 former employees at the plant. The Brampton facility was part of a larger $3.6 billion investment in Ontario, supported by over $529 million in federal subsidies through Canada’s Strategic Innovation Fund. Stellantis was committed to maintaining an average of 4,475 full-time employees in Canada and continuing production through December 2035.
In October 2025, Stellantis abruptly shifted Jeep Compass production to its Illinois plant, citing US tariffs as the reason. This decision triggered a formal dispute resolution process by Canada’s Industry Minister aimed at recovering some of the subsidy funds. Since then, the Brampton plant has remained closed.
Under the new proposal, Stellantis intends to assemble vehicles using “knock-down kits” — pre-manufactured parts shipped from China that are assembled locally with minimal involvement from the domestic supply chain. This model is already employed by Leapmotor and other Chinese manufacturers in markets such as Mexico and Brazil.
The reaction from Ontario’s government and labour unions has been swift and negative. Unifor has confirmed that Stellantis directly presented the Leapmotor plan to the union. Ontario Premier Doug Ford has declared the proposal “unacceptable,” citing concerns that the knock-down kit model would create far fewer jobs and exclude Canadian parts suppliers.
Unifor National President Lana Payne echoed these concerns, emphasising that the arrangement would “use very few jobs assembling these knock-down kits” and bypass the Canadian supply chain entirely. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, warned that approving Chinese knock-down kits would “freeze out hundreds of Canadian auto parts suppliers.”
The timing of this proposal coincides with a recent agreement between Prime Minister Mark Carney and Chinese President Xi Jinping to reduce Canada’s tariff on Chinese EVs from 100% to 6.1%. This deal limits Chinese EV imports to 49,000 vehicles initially, rising to 70,000 over five years, in exchange for China lowering tariffs on Canadian canola and other agricultural products.
However, the US remains a significant hurdle. Washington has indicated it will not permit Chinese vehicles to enter the US market via Canada. Former President Trump previously suggested imposing tariffs as high as 100% on Canadian goods if the country deepened ties with Chinese automakers. US Senator Bernie Moreno has proposed expanding existing bans on Chinese vehicles to include those with Chinese-origin software, labelling them a “cancer.”
Any Leapmotor vehicles assembled in Brampton would likely face prohibitive tariffs if exported to the US, restricting their market to Canada’s smaller domestic demand.
Stellantis spokesperson LouAnn Gosselin stated that the company is “actively evaluating future programs for Brampton, with the objective to ensure that any investment decision is sustainable,” but did not confirm or deny the specific Leapmotor discussions.
Stellantis has been under pressure to reduce EV costs across its diverse brand portfolio, and Leapmotor’s affordable and efficient EV platforms could offer a potential solution—though navigating Canadian political and labour challenges will be crucial.