Stellantis decides to shift production of its Jeep Compass from Brampton, Ontario, to Belvidere, Illinois, sparking a reaction from Canadian officials.
TORONTO: The leader of Canada’s most populous province, Ontario Premier Doug Ford, has called for economic retaliation against the US following auto company Stellantis’ decision to move production of its Jeep Compass from Brampton, Ontario, to Belvidere, Illinois.
This shift in production is part of a larger plan by Stellantis to invest $13 billion in expanding its manufacturing capacity within the United States.According to Ford, this move can be attributed directly to pressure from US President
Donald Trump, who has been advocating for American automakers to relocate their production facilities back home.
In response, Ford stated that Canada needs to take a firmer stance and fight back through economic retaliation, specifically by imposing tariffs if Prime Minister Mark Carney fails to secure a trade deal with the US.This development comes as Canada is in discussions aimed at reducing tariffs.
Dominic LeBlanc, Canada’s minister responsible for US-Canada trade, is currently in Washington for talks on this matter.
Meanwhile, Carney has indicated that Stellantis’ decision to move production was a direct consequence of the ongoing tariff disputes and that his government will work closely with the company to explore new opportunities in Brampton, while ensuring that workers are not negatively affected by this change.
The Canadian federal government has also threatened legal action against Stellantis for their decision.Federal Industry Minister Mélanie Joly has vehemently criticized Stellantis’ decision, stating that it is 'unacceptable' given the company's commitments to maintaining Canadian production in exchange for substantial financial support.
She warned Stellantis that any failure to uphold these commitments would be considered a default under existing agreements.The news of Stellantis’ shift in production has sparked fear within Ontario regarding the future of Canada’s auto sector, which is the country’s second-largest export.
The sector directly employs 125,000 Canadians and indirectly supports nearly another 500,000 individuals working in related industries.Brampton Mayor Patrick Brown expressed his concerns over this bullying tactic used by the Trump administration, suggesting that if it proves effective against Stellantis, other automakers present in Canada could be subject to similar pressures.
Additionally, workers at the Stellantis assembly plant in Brampton received a robocall from their employer stating that previously anticipated work assignments would not resume.
The factory was closed in 2023, leading to the layoff of approximately 3,000 workers as it underwent retooling.Stellantis has announced plans to reopen its Belvidere Assembly Plant in Illinois, aiming to expand Jeep production in the US and create thousands of new jobs there.
However, this decision came as a surprise to many, given Stellantis’ previous assurances of maintaining Jeep Compass production in Brampton.Despite this setback, Stellantis has affirmed its ongoing investments in Canada, including adding a third shift at the Windsor, Ontario assembly plant.
The company is also engaged in discussions with the Canadian government regarding the future of the Brampton facility.
Canada's Prime Minister, Mark Carney, who won his recent election amidst concerns over trade disputes and potential economic retaliation from the US, continues to strive for improving bilateral relations as the countries review their free trade agreement next year.
Over 75% of Canada’s exports are currently destined for the US market, and in light of this, Canada has recently removed many retaliatory tariffs aligning with exemptions granted under the United States-Mexico-Canada Agreement (USMCA).Ford has insisted that Canada should take a more aggressive stance against the US tariffs by implementing harsher measures.
He is scheduled to meet with Prime Minister Carney this week to discuss potential retaliation strategies.