Stellantis backtracks on plans to build Jeep model in Ontario, shifts to U.S.

Stellantis announced Tuesday it will invest $13 billion US over the next four years to expand its manufacturing capacity in the U.S. — a move that will take production of one model out of Ontario, raising concern about Canadian jobs.

The company, formerly known as Chrysler, says the Jeep Compass, previously slated to be made at the Brampton Assembly Plant, will move to the Belvidere Assembly Plant in Illinois.

Stellantis says its new investments will increase its U.S. vehicle production by 50 per cent and add more than 5,000 jobs.

But in Canada it means "auto jobs are being sacrificed on the Trump altar,” said Unifor National President Lana Payne in a statement.

The Brampton, Ont., plant has been shut down since early 2024 for retooling to build the next generation model of the vehicle, but that work was halted in February as a tariff threat loomed.

Payne called on the government to take action to protect the jobs.

"Stellantis cannot be allowed to renege on its commitments to Canadian workers, and governments cannot stand by while our jobs are shifted to the United States," said Payne, whose union represents thousands of auto workers at Stellantis, Ford and General Motors.

Brampton Mayor Patrick Brown called the decision deeply disappointing.

"This announcement represents a step backward from its commitment to modernize and retool the Brampton facility — a commitment that gave its 3,000 workers and their families hope for a secure and sustainable future in auto manufacturing," he said in a statement.

Stellantis's $13 billion investment in the U.S. comes as the Canadian auto industry faces both uncertainty and financial pressure due to tariffs imposed this year by U.S. President Donald Trump, who wants to see more domestic vehicle production.

Prime Minister Mark Carney called the decision a "direct consequence of current U.S. tariffs and potential future U.S. trade actions."

In a statement Tuesday night, Carney said the federal government was working with the Ontario government and Unifor to protect the Brampton employees and create new opportunities for them.

"We have further made clear that we expect Stellantis to fulfill the undertakings they have made to the workers of Brampton," he stated.

Asked what will happen to the Brampton plant, a spokesperson for Stellantis said, "Canada is very important to us. We have plans for Brampton and will share them upon further discussions with the Canadian government."

"We have been in Canada for over 100 years, and we are investing," said LouAnn Gosselin, head of communications for Stellantis in Canada.

She pointed out that the company announced plans to follow through with a promise to add a third shift to the Windsor Assembly Plant in southwestern Ontario.

Last week, when reports of Stellantis's upcoming investment were published in the U.S., one auto industry analyst told CBC News such a move wouldn't be a shock.

"It does not come as a surprise to me, and I don't think anyone who has been watching what's been unfolding in the United States should be surprised by this as well," said Tom Venetis, editor of Octane magazine.

He says the new regime of tariffs is putting pressure on Stellantis to "rethink" its investment and manufacturing strategies.