Since the decision to shift production of the revamped Jeep Compass from Brampton to the U. S., Stellantis has been exploring options for its currently unused plant in Ontario. Last month, they proposed the idea of assembling electric vehicles there in collaboration with their Chinese partner, Leapmotor.
This sounds promising, but the plan involves importing key parts from China and only doing final assembly at the Brampton facility – what’s referred to as complete knockdown form (CKD). Both the federal and Ontario governments, along with members of Canada’s auto supply chain, view this as a significant issue. In fact, there are two main concerns:
1) Firstly, relying on imported parts would undoubtedly hurt local Canadian suppliers who provide components;2) Limiting production to CKD would mean employing only a small fraction of the workforce necessary for full production. Unifor Local 1285 president Vito Beato mentioned to Automotive News that this setup would require just 200 to 300 workers at the Brampton plant, which is barely 10 percent of what was needed for assembling the Dodge Charger and Challenger previously produced there.
Des véhicules Leapmotor | Photo: Stellantis
Stellantis has used this strategy before. They currently produce the Leapmotor C10 electric SUV for Europe at a facility in Poland using CKD methods. Major components come from China and are assembled there.
The Canadian government, which had previously supported Stellantis financially in Ontario and was unhappy with their change regarding the Jeep Compass, is now negotiating with them amidst potential legal actions. Finding common ground about using the Brampton plant for Leapmotor production could help both sides avoid conflict. However, Ottawa is clear that any agreement won’t come at the expense of Canadian auto suppliers.
| Photo: Stellantis
Stellantis-Leapmotor
The partnership between Stellantis and Leapmotor continues to grow stronger, with Stellantis owning around 20 percent of Leapmotor shares and a controlling stake of 51 percent in Leapmotor International-the joint venture created for marketing this Chinese company’s vehicles outside China. In Europe, Stellantis offers two models from Leapmotor-the C10 SUV and T03 small car-and reports suggest they’re collaborating more closely on engineering and vehicle development.
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The partnership between Stellantis and Leapmotor continues to grow stronger, with Stellantis owning around 20 percent of Leapmotor shares and a controlling stake of 51 percent in Leapmotor International-the joint venture created for marketing this Chinese company’s vehicles outside China. In Europe, Stellantis offers two models from Leapmotor-the C10 SUV and T03 small car-and reports suggest they’re collaborating more closely on engineering and vehicle development.
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