(Updated) Concerns ripple through auto industry after Stellantis shifts away from Ont. plant

Fears that Canada's automotive industry could lose out to the U.S. are becoming more of a reality after Stellantis said it was moving planned production of its Jeep Compass from Brampton, Ont., to Illinois.

The decision, announced as part of a broader US$13-billion investment in the U.S., comes after U.S. President Donald Trump imposed tariffs on vehicles and key metals used to produce them in an effort to bring more auto assembly into the country.

While Stellantis said in a statement that it has plans for the Brampton plant, it didn't provide any details on what they were or how they compare to its previous plan that would have seen some 3,000 employees return to work this year to build the Jeep vehicles in Ontario.

The change makes the outlook for Brampton more dire, and the need to find new partners beyond U.S. automakers more pressing, said Greig Mordue, associate professor at McMaster University's W Booth School of Engineering.

"Any reasonable person looking at the status of Brampton could probably look at it and say, that's in tough shape, and frankly, yesterday's announcement made it even tougher."

The latest decision by Stellantis follows on several moves by Detroit automakers to delay or cut back production in Canada, as tariffs come in and electric vehicle adoption has been slower than expected.

General Motors idled its CAMI assembly plant that produces EV delivery trucks in Ingersoll, Ont., for months this year and is moving to a single shift there. The company is also set to cut a shift at its Oshawa plant in January. Meanwhile, Ford last year shifted plans for its Oakville assembly plant that will see production delayed.

"The reality is those U.S. automakers have almost abandoned Canada. I mean, they've got a plant in Windsor, and a declining plant in Oshawa making vehicles. That's it," said Mordue.

Given the current situation, he said it's time Canada look to potentially try and attract rising auto producers, especially from China, if it wants to maintain the sector long-term.

"No one is making wild pronouncements about opening up the world to China right now, but it's going to have to happen, or we're just going to watch this wither."

For now, politicians, labour leaders and industry members are focusing more on pressuring Stellantis to keep its commitments to Canada. 

Ontario Premier Doug Ford said the company has a duty to live up to its promise to workers. He said the province would be halting any funding, including for the battery plant Stellantis is developing with LG, since funding was based on keeping Brampton going as well.

"I'm not going to give them a penny," he said at a press conference Wednesday.

Ford said Stellantis told him that it was going to postpone production in Brampton for a year and that it would find a new model. 

Production at the plant ended in late December 2023 and retooling began in January 2024 to prepare for the Jeep Compass. After Trump started rolling out tariffs earlier this year, the company halted work on retooling in February.

Prime Minister Mark Carney said in a statement that the government will be working with Stellantis to create new opportunities in and around Brampton, and that he expects the company to fulfil its promises to Brampton workers. 

Unifor national president Lana Payne said the federal government needs to do all it can to defend the Brampton plant, the auto sector and other industries feeling the weight of tariffs.

"Targeted Canadian industries are already experiencing the financial impact and job losses due to Trump’s sustained attacks,” she said in a statement.

"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."

Flavio Volpe, head of the Automotive Parts Manufacturers' Association, said on social media that some 10,000 workers at parts suppliers are also relying on Brampton getting a product. 

"Hundreds of millions of dollars in Canadian parts suppliers’ investments have been casually kicked aside without notice by this cowardly decision by Stellantis," he said.

The company said it continues to invest in Canada, including adding a third shift to the Windsor Assembly Plant where it produces the Chrysler Pacifica minivan and Dodge Charger. 

"Canada is very important to us," said spokeswoman LouAnn Gosselin in a statement.

While the company says it remains committed to Canada, the decision dilutes the potential of the Brampton plant going forward, said Sam Fiorani, vice-president of global vehicle forecasting at AutoForecast Solutions.

"A move like this falls right into the hands of the Trump administration's desire to move product to the U.S."

He said that given the company's announcement to build so many other vehicles in the U.S., it looks like the Windsor plant is still at least needed.

The wider concern is the fragmenting of the North American auto industry will weaken the sectors in all three countries, said Fiorani. 

"Canada, U.S., and Mexico made a great team on the global market, and none of those countries is large enough or strong enough to compete with the likes of China and the EU."

He said that if the U.S. keeps moving forward with shutting out Canada's auto sector, then it might make sense to look to partner with Chinese manufacturers that have been looking at Canada for over a decade.

"If the U.S. turns Canada into its enemy, the automotive industry of Canada will look elsewhere for partners."

This report by The Canadian Press was first published Oct. 15, 2025.