Stellantis, one of the major American car manufacturers, has decided to shift its plans for producing a Jeep model from Canada to the United States. This change comes as the company aims to boost its production capacity in the U.S. Instead of making the Jeep Compass at the Brampton Assembly Plant in Ontario, Stellantis will now reopen a plant in Belvidere, Illinois.
The company announced this shift on Tuesday, stating that it plans to invest $13 billion over the next four years to expand its operations in the United States. This investment is the largest in Stellantis’ 100-year history in the U.S. and will support the launch of five new vehicles, the production of a new four-cylinder engine, and the creation of over 5,000 jobs in Illinois, Ohio, Michigan, and Indiana.
This decision has drawn criticism from Canadian leaders. Prime Minister Mark Carney expressed his disappointment, linking Stellantis’ choice to the tariffs imposed by former President Donald Trump. These tariffs have made it more costly for American automakers to produce vehicles abroad and sell them in the U.S. market. Carney remarked that this situation is a direct result of current U.S. tariffs and potential future trade actions.
The Brampton plant has been closed since 2024 while it was being prepared to manufacture the next-generation electrified Jeep Compass. However, after the tariffs were introduced, Stellantis paused its plans for retooling the facility. The union representing Canadian auto workers, Unifor, voiced concerns about the loss of jobs in Canada, stating that workers are suffering due to these trade policies. Unifor’s National President, Lana Payne, emphasized the need to hold Stellantis accountable for its commitments to Canadian workers.
Ontario’s Premier Doug Ford also expressed his disappointment, stating that the decision to prioritize U.S. investment is especially hard on workers who have been without jobs for months. He reached out to Stellantis to convey his concerns directly.
Earlier this year, the Trump administration imposed a 25% tariff on imports of automobiles and certain parts, claiming it was necessary for national security. This policy has prompted several automakers, both American and foreign, to announce plans to increase their production in the U.S. In a related move, General Motors reduced production at a plant in Oshawa, Ontario, citing the impact of these tariffs.
As Stellantis shifts its focus to U.S. production, the implications for Canadian workers and the auto industry will continue to unfold.
