Stellantis (NYSE: STLA) announced Tuesday it will move Jeep Compass production from its Brampton, Ontario plant to Illinois as part of a $13 billion investment to expand US manufacturing operations over the next four years, dealing a blow to Canadian auto workers amid escalating trade tensions.
The decision affects approximately 3,000 workers at the Brampton Assembly Plant, which has been shuttered since February 2024. The facility had been slated for retooling to produce both electric and gas-powered Jeep Compass vehicles, with production expected to restart in the fourth quarter of 2025.
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Prime Minister Mark Carney said that the decision is a “direct consequence of current US tariffs and potential future US trade actions,” referring to tariffs imposed by US President Donald Trump aimed at increasing domestic vehicle production.
The move comes a week after US Commerce Secretary Howard Lutnick said the Trump administration aims to eliminate vehicle assembly in Canada and relocate production to the United States.
The Ontario and federal governments had each committed C$132 million in 2022 to help modernize the Brampton facility for electric vehicle production.
“Stellantis cannot be allowed to renege on its commitments to Canadian workers,” said Unifor National President Lana Payne. Vito Beato, representing workers at the Brampton plant, said the union intends to hold Stellantis to its promises.
A Stellantis spokesperson said the company has “plans for Brampton” that will be shared following further discussions with the Canadian government.
The investment is expected to increase Stellantis’ US vehicle production by 50% and add more than 5,000 jobs.
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