As reported by , Stellantis is currently negotiating with a Chinese automaker to assemble electric vehicles at its facility in Brampton, located in the Greater Toronto Area. Ontario Premier Doug Ford has labeled this development as “unacceptable.” Federal Industry Minister Mélanie Joly emphasized that any production at the plant needs to have backing from both Ontario and labor unions. Experts caution that introducing Chinese-made electric vehicle “knock-down kits” into Canada might jeopardize local manufacturing and lead to significant job losses.
Lana Payne, president of Unifor, which represents laid-off Stellantis workers, confirmed last Friday that Stellantis is considering several alternatives for the inactive Brampton plant, including working with Zhejiang Leapmotor Technology to assemble imported kits. Stellantis did not confirm or deny these discussions. The Brampton facility previously employed around 3,000 workers but halted production at the end of 2023.
According to Reuters, Stellantis acquired a 21 percent share in Leapmotor for $1.6 billion in 2023 and formed a joint venture named Leapmotor International, where Stellantis owns a 51 percent stake.
Industry Minister Mélanie Joly stated: “We cannot ship complete vehicles to Canada in the form of parts kits for assembly. We must support the local supply chain.” She further mentioned that new automotive investments will focus on enhancing Canada’s supply chain while supporting local labor and parts suppliers.
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Check your email to complete sign up In an interview with , Premier Doug Ford expressed concerns that such partnerships could negatively impact auto workers in Ontario. “It’s unacceptable. It’s everything against what the federal government told the auto workers here in Ontario,” he remarked. “We can’t have cheap Chinese parts and kits coming over to be assembled,” he added. “We’re dead against this.” The Stellantis Windsor Assembly Plant is shown on April 1, 2025 in Windsor, Canada. U. S. President Donald Trump has been referring to tomorrow, April 2, as “Liberation Day”, when his administration will begin implementing sweeping new tariffs on goods imported into the United States from other countries. (Image: Bill Pugliano/Getty Images)Stellantis Plan Sparks Job Loss Concerns
Payne noted that collaborating with Chinese automakers and relying on imported components for knock-down kit assembly raises “serious concerns.” “These types of kit assembly plants employ very few workers and could lead to the loss of tens of thousands of direct assembly jobs and jobs in the auto parts sector.” The concept of knock-down kit assembly isn’t new; Volvo has utilized it in Nova Scotia while Volkswagen has done so in Mexico and South America. Recently, various Chinese EV makers-including Leapmotor-have adopted this strategy for international growth, achieving a remarkable 21 percent rise in overseas sales across regions like Europe and Latin America. The Globe and Mail cites University of Waterloo mechanical engineering professor Peter Frise explaining how this method allows China to take advantage of its factories and cost efficiency during times of excess capacity when expanding internationally; however, for Brampton residents it means fewer job opportunities along with lower skill requirements. The also highlighted comments from University of Toronto history professor Dimitry Anastakis who pointed out that historically Canadian policy encouraged or mandated automakers use locally sourced parts. Canada has had knock-down kit operations before; between 1963 and 1998 Volvo (now owned by China’s Zhejiang Geely Holding Group) ran a “partial knock-down” (PKD) plant in Nova Scotia sourcing most components from Sweden. Anastakis’s research paper indicated that Volvo had promised “job prosperity and industrial development,” but those commitments were never fulfilled as employment never exceeded 200 people directly while PKD models failed to create substantial related work within parts or assembly sectors. The study also observed a continuous decline each year regarding Canadian-made components within their vehicles; even though output increased from several thousand units up towards about 10,000 units annually-it remained far below other plants during similar periods. By Li XinSource link
