Stellantis’ recent decision to shift the production of its Jeep Compass from Brampton to the U.S., jeopardizing 3,000 Canadian jobs, raises significant concerns about the rationale behind allocating up to $15 billion in federal and Ontario government subsidies to Stellantis-LG Energy Solution. This move is just the beginning of broader worries regarding the company’s commitment to Canada.
Equally troubling is Stellantis’ $13 billion plan, unveiled on Tuesday, to boost auto production in the U.S. by 50% over the next four years in states like Illinois—where the Jeeps will be manufactured—Ohio, Michigan, and Indiana. This strategy notably downplays the company’s future production of electric vehicles (EVs). As reported by TC TechCrunch transportation editor Kirsten Korosec, this investment plan “doesn’t focus on electrification,” with EVs taking a “backseat” in Stellantis’ agenda.
In response to the concerns and frustrations voiced by Prime Minister Mark Carney, Ontario Premier Doug Ford, and Brampton Mayor Patrick Brown, Stellantis maintains that it remains committed to Canada and is in discussions with the government regarding future plans for the Brampton plant, as well as the potential addition of a third shift at its Windsor facility.
Despite these reassurances, Stellantis’ actions raise serious questions about the wisdom of committing substantial subsidies—up to $15 billion—announced in 2023 for the construction of an EV battery plant in Windsor, along with a joint federal and Ontario investment exceeding $1 billion from 2022 to support the Stellantis plants in Windsor and Brampton.
Automakers are already grappling with the fallout from U.S. President Donald Trump’s tariffs aimed at shifting Canadian auto production to the U.S., compounded by declining EV sales due to consumer concerns over high prices, limited range, and the availability of public charging stations. General Motors recently reported a $1.6 billion loss in its third-quarter earnings related to EVs, highlighting the financial challenges facing the industry.