Stellantis’s Brampton decision latest worrying sign for Canadian auto sector
Written by The Canadian Press on October 15, 2025
TORONTO — 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, and other commitments by the Detroit Three automakers, more dire, 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 are working to pressure 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.
“I have spoken with Stellantis to stress my disappointment with their decision to prioritize investment into the U.S.,” said Ford in a statement.
Prime Minister Mark Carney said the move was a direct consequence of U.S. tariffs and his government will be working with Stellantis to create new opportunities in and around Brampton.
“We expect Stellantis to fulfil the undertakings they have made to the workers of Brampton,” he said in a statement.
Stellantis 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.
“Stellantis doesn’t have a lot of excess capacity, and that means that Windsor still needs to build the products that they’re building, just simply because there’s no place else to.”
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.
“We need a co-ordinated Team Canada approach, bringing all sectors together to use the power we have.”
This report by The Canadian Press was first published Oct. 15, 2025.
Ian Bickis, The Canadian Press