Stellantis backtracks on plans to construct Jeep mannequin in Ontario, shifts to U.S.

[ad_1] Stellantis introduced Tuesday it is going to make investments $13 billion US over the subsequent 4 years to increase its manufacturing capability within the U.S. — a transfer that can take manufacturing of 1 mannequin out of Ontario, elevating concern about Canadian jobs.

The corporate, previously often known as Chrysler, says the Jeep Compass, beforehand slated to be made on the Brampton Meeting Plant, will transfer to the Belvidere Meeting Plant in Illinois.

Stellantis says its new investments will improve its U.S. car manufacturing by 50 per cent and add greater than 5,000 jobs.

However in Canada it means "auto jobs are being sacrificed on the Trump altar,” stated Unifor Nationwide President Lana Payne in a press release.

The Brampton, Ont., plant has been shut down since early 2024 for retooling to construct the subsequent technology mannequin of the car, however that work was halted in February as a tariff risk loomed.

Payne known as on the federal government to take motion to guard the roles.

"Stellantis can't be allowed to renege on its commitments to Canadian employees, and governments can not stand by whereas our jobs are shifted to the US," stated Payne, whose union represents hundreds of auto employees at Stellantis, Ford and Basic Motors.

Brampton Mayor Patrick Brown known as the choice deeply disappointing.

"This announcement represents a step backward from its dedication to modernize and retool the Brampton facility — a dedication that gave its 3,000 employees and their households hope for a safe and sustainable future in auto manufacturing," he stated in a press release.

Stellantis's $13 billion funding within the U.S. comes because the Canadian auto trade faces each uncertainty and monetary strain because of tariffs imposed this yr by U.S. President Donald Trump, who desires to see extra home car manufacturing.

Prime Minister Mark Carney known as the determination a "direct consequence of present U.S. tariffs and potential future U.S. commerce actions."

In a press release Tuesday evening, Carney stated the federal authorities was working with the Ontario authorities and Unifor to guard the Brampton workers and create new alternatives for them.

"We now have additional made clear that we anticipate Stellantis to satisfy the undertakings they've made to the employees of Brampton," he said.

Canada 'essential' Requested what is going to occur to the Brampton plant, a spokesperson for Stellantis stated, "Canada is essential to us. We now have plans for Brampton and can share them upon additional discussions with the Canadian authorities."

"We now have been in Canada for over 100 years, and we're investing," stated LouAnn Gosselin, head of communications for Stellantis in Canada.

She identified that the corporate introduced plans to comply with by with a promise so as to add a 3rd shift to the Windsor Meeting Plant in southwestern Ontario.

Final week, when experiences of Stellantis's upcoming funding have been printed within the U.S., one auto trade analyst advised CBC Information such a transfer would not be a shock.

"It doesn't come as a shock to me, and I do not suppose anybody who has been watching what's been unfolding in the US needs to be shocked by this as effectively," stated Tom Venetis, editor of Octane journal.