The discussions are happening as the Canadian government launches a new auto strategy aimed at protecting local production and drawing in fresh investments.
On the Dash:
Stellantis is in talks with the Canadian government about restarting operations at its closed Brampton plant. The company shifted Jeep Compass production to Illinois as part of a $13 billion investment initiative in the U. S. Canada’s updated automotive strategy might play a key role in deciding the plant’s future.
Stellantis is aiming to restart vehicle assembly at its inactive Brampton Assembly Plant located in Ontario while it negotiates with Canadian officials and labor representatives concerning tariffs and future investment strategies.
During a Thursday event at the Canadian International Auto Show in Toronto, Stellantis Canada CEO Trevor Longley shared that the automaker seeks a sustainable solution for the Brampton site after moving Jeep Compass manufacturing to the United States. Currently, the facility remains idle, impacting roughly 3,000 workers in Canada.
Subscribe to CBT News’ daily newsletter for updates on industry stories delivered right to your inbox.
This production change was announced back in October as part of Stellantis’ comprehensive $13 billion plan aimed at bolstering its U. S. operations and reducing tariff risks. The relocation of Compass production triggered criticism from Canadian leaders.
In response to this shift, Prime Minister Mark Carney’s administration limited how many vehicles made in the U. S. Stellantis can bring into Canada without facing additional tariffs. These retaliatory taxes were initially put into place due to U. S. trade actions but offer exemptions for manufacturers who continue investing and producing within Canada.
Currently, Stellantis is engaged with both federal authorities and Unifor, which represents workers at Brampton, addressing tariff challenges while exploring potential new products for the facility. Longley noted that they’re still considering future production possibilities.
Industry Minister Melanie Joly has warned of possible legal action over this production shift and has promised to reclaim public funds previously allocated to support Stellantis financially.
The negotiations come as Canada’s government introduces an updated national automotive strategy meant to safeguard domestic manufacturing and encourage new investments. This plan suggests modifications to tariff remission programs that could enable automakers building vehicles in Canada to earn import credits-credits which could be used for bringing U. S.-made cars into Canada without tariffs or traded with other companies.
Stellantis mentioned that it needs more clarity before fully assessing this proposal but expressed support for initiatives that enhance competitiveness within Canadian auto manufacturing. The executive also voiced concerns regarding Canada’s agreement with China allowing 49,000 electric vehicles into the country at a lowered 6.1% tariff rate, questioning whether local manufacturers are competing fairly against this deal.
Source link
Source link
