This photograph shows Stellantis’ logo displayed on the premises of the multinational car manufacturer’s plant in Poissy, west of Paris, on September 23, 2025. (Photo by Thibaud MORITZ / AFP)
Automaker Stellantis says it will spend $13 billion over the next four years to expand its manufacturing capacity in the United States, which involves moving production of one of its Jeep models out of Ontario.
The company announced on Oct. 14 that it will be re-opening production of two new Jeep vehicles in Belvidere, Illinois, in 2027. Production of the Jeep Compass, which was previously slated for the Brampton Assembly Plant in Ontario, will move to Illinois.
The factory in Brampton had been shut down since 2024 as the company retooled to build the next generation of the Jeep Compass, but the work was paused in February after U.S. tariffs were announced. The new electric SUV was originally scheduled to go into production at the plant later this year.
The United States has imposed a wide array of tariffs on Canada this year, which include 25 percent tariffs on vehicles and auto parts in April. U.S. President Donald Trump will also impose 25 percent tariffs on all medium- and heavy-duty trucks entering the United States beginning in November.
Prime Minister Mark Carney said in an Oct. 14 statement that Stellantis’s announcement is a “direct consequence of current U.S. tariffs and potential future U.S. trade actions.” He said decisions around investments in Canada’s auto sector will continue to be impacted until the review of the United States-Mexico-Canada Agreement (USMCA) in 2026.
Carney said Ottawa is working with Stellantis on measures to protect employees and create new opportunities for them in Brampton, adding that the government expects Stellantis “to fulfill the undertakings they have made to the workers of Brampton.”
The prime minister said as the government continues negotiating with the United States, Ottawa is making strategic investments in the Canadian economy, including by implementing the $5 billion Strategic Response Fund to help industries impacted by tariffs, helping workers acquire new skills, and encouraging industries to buy Canadian products.
Unifor, the union that represents the Brampton auto workers, said in a statement that the federal government needs to use “leverage” to fight for auto jobs. “Canadian auto jobs are being sacrificed on the Trump altar,” Unifor national president Lana Payne said in an Oct. 14 statement.
“Saving Brampton Assembly must now be this country’s top priority, sending a strong message to any corporation thinking they can take the same egregious actions,” she added.
The Opposition Conservatives commented on the Stellantis announcement, saying in a statement that the prime minister has failed to “negotiate a win” with the U.S. president.
“Mark Carney’s response is for auto workers to wait until he can renegotiate CUSMA. After failing to get the deal he promised three months ago, auto workers can no longer afford to wait. Thousands now have to worry about paying their mortgages, putting food on the table or having to tell their kids they can’t afford to register for hockey this winter,” said the Oct. 15 statement.
The Tories also noted that the Liberal government gave Stellantis up to $10 billion in subsidies for an electric vehicle plant in Windsor, Ont., but did not require job guarantees for autoworkers. Northvolt’s planned electric vehicle battery factory in Quebec, which received $4.4 billion in financing from Ottawa and $2.9 billion from Quebec, was also cancelled in September.
Additionally, the Conservatives said 700 workers at a General Motors plant in Oshawa lost their jobs after GM announced a $4 billion investment in the United States, while 500 workers at the GM CAMI Assembly plant in Ingersoll lost their jobs to the United States, and 150 Stellantis workers in Windsor were laid off.
Ontario Premier Doug Ford said on X he had spoken with Stellantis to emphasize his “disappointment” with the decision, and said he would “never stop fighting for Ontario’s world-class auto workers.” He added that no provincial funding has been given to the auto company, and said it has a “duty to live up to their promise” to Brampton autoworkers.
“No provincial funding will be given until we receive clear assurances on when the plant will restart operations and meet that commitment,” he said.
Matthew Horwood is a reporter based in Ottawa.