The future’s still on hold for 2,200 autoworkers at a Stellantis plant in Brampton — and industry sources say dwindling electric-vehicle subsidies and uncertainty caused by Donald Trump’s tariff threats are to blame.
The automaker announced Thursday it’s “pausing” work on the next generation of its Jeep Compass, which had been scheduled to go into production at its Brampton assembly plant in the fourth quarter this year. The news sent shock waves through the Ontario election campaign, just days before voters go to the polls Feb. 27.
In a wide-ranging White House press conference, Trump also argued that Russia should be
“Stellantis continues to reassess its product strategy in North America to ensure it is offering customers a range of vehicles with flexible powertrain options to best meet their needs,” said Stellantis spokesperson Lou Ann Gosselin in a written statement. “As a result, the Company is temporarily pausing work on the next generation Jeep Compass, including activities at the Brampton Assembly Plant.”
The company insisted it’s still committed to its retooling of the plant, which has been underway since January 2024.
The federal and Ontario governments have committed hundreds of millions of dollars to the plant retooling, and to retooling an assembly plant in Windsor. The latter plant is already up and running again, and the company was expected to add a third production shift later this year.
‘This will be purely inflationary,’ said Flavio Volpe of the Automotive Parts Manufacturers’
Retooling of the two plants was expected to cost up to $3.6 billion, with industry sources estimating that government money accounted for up to 20 per cent of that. (Typically, the sources said, auto manufacturers incur the costs up front, and then get reimbursed by governments once work is actually completed.)
Most of the 2,200 workers at the Brampton plant have been off the job since retooling started. It had previously produced muscle cars, including the Dodge Charger, but was expected to produce electric and non-electric versions of the Compass in the future for the North American market. (The new models will debut in Europe later this year, with production taking place in Italy.)
In an interview, Unifor union national president Lana Payne said the announcement is a predictable result of Trump’s tariff threats, as well as his threats to dismantle electric-vehicle subsidies initiated under his predecessor, Joe Biden.
“This is one of what I expect is going to be many examples, until we get into a place where we’re fighting back hard against this,” said Payne. “The crisis is now. The economic warfare is occurring now.”
Trump backer Lourenco Goncalves is the CEO of American steel giant Cleveland Cliffs, which
Earlier this week, Trump said he’d be imposing a 25 per cent tariff on all automotive imports.
Previously, he said he’ll impose 25 per cent tariffs on steel and aluminum imports, and an across-the-board 25 per cent tariff on all imports from Canada and Mexico. He has also said the steel and aluminum tariffs would be on top of the across-the-board ones.
The Stellantis news brings more uncertainty to an industry already reeling from Trump’s tariffs threats, said Flavio Volpe, president of the Automotive Parts Manufacturers’ Association.
“If you’re a supplier to that plant or a worker at the plant or one of the supplier plants, a pause doesn’t ease your anxiety,” said Volpe, who expressed cautious optimism at the company’s public commitment to maintain its investment in the Brampton plant.
“I think it was important for all of us to hear the company say this doesn’t change their investment commitment,” said Volpe. “But until you know what product is in there, you’re not going to relax.”
The American president raised a long list of complaints against Canada and said the Canada-U.S.
Volpe added that shrinking EV subsidies in Canada, and the potential end of the U.S. Inflation Reduction Act — which includes tax credits for EV purchases — has hammered demand for EVs.
“Part of the business case for that Compass (was) the incentives and tax credits,” Volpe said. “If their internal calculations said an electric Jeep Compass wouldn’t sell in volume, given all the pressures that are on us right now, I don’t mind them going for a reset.”
The news sent shock waves through the Ontario election campaign, with voters set to go to the polls Feb. 27.
In a statement, Ontario Progressive Conservative Leader Doug Ford, campaigning for re-election, said the Stellantis move proves “the threat of President Trump’s tariffs and the economic uncertainty it’s creating is already having an impact on Ontario workers.
“And it’s only the beginning. Now, more than ever, we need to invest in our frontline workers to protect good-paying jobs in Ontario,” Ford said Thursday. “We will make sure that Stellantis upholds every aspect of our agreement and will do whatever it takes to protect workers and jobs in Brampton and across Ontario.”
NDP Leader Marit Stiles said the Stellantis decision is an indictment of Ford’s Tories, who have been in power since 2018.
“This news will hit hard for the 2,200 autoworkers in Brampton who are waiting to return to work. Doug Ford’s approach is failing workers,” said Stiles. “As premier, I will fight for our auto sector, defend every job, and work to secure new markets.”
Liberal Leader Bonnie Crombie said “this news is devastating for Stellantis workers and their families.”
“We need to urgently diversify our economy to protect against shocks like this,” said Crombie. “The sad reality is that our economy is ill-prepared and vulnerable because Doug Ford has failed over the last seven years to attract investment, diversify our economy, and prepare our workforce for the serious challenges on the horizon.”
In a post on X, federal Industry Minister François-Philippe Champagne said he’s been in touch with both the company and union.
“We stand with those impacted and are in contact with Stellantis and Unifor. We will make sure that Stellantis honours its commitments and follows through on its plans for Brampton,” .
Brampton Mayor Patrick Brown said he’s “grateful” for the company’s commitment to investing in the assembly plant, but admitted it’s a nerve-wracking time for the industry.
“I’m concerned for Canada’s entire automotive sector right now,” said Brown, who stressed that he’s reaching out to other levels of government.
“We are committed to working with our federal and provincial partners in supporting the ongoing success of Brampton’s automotive sector,” Brown added.
With files from Robert Benzie
To join the conversation set a first and last name in your user profile.
Sign in or register for free to join the Conversation