Stellantis Moves Jeep Production from Brampton to Illinois Boosting Local Manufacturing

Stellantis NV has announced a significant shift in its production strategy, moving the assembly of the Jeep Compass from Brampton, Ontario, to Illinois. This decision is part of a broader US$13 billion investment aimed at enhancing manufacturing capabilities in the United States.

Impact of US Tariffs on Production

The Brampton facility has been idle since 2023, following a halt in retooling efforts after the introduction of a 25% tariff on imported vehicles by the U.S. government under former President Donald Trump. Approximately 3,000 unionized employees remain affected, with the plant’s immediate future uncertain.

Stellantis’s Commitment to U.S. Manufacturing

• Stellantis plans to increase its U.S. production by 50% over the next four years.
• Five additional vehicle models will be introduced in the U.S. market.
• The investment will create over 5,000 jobs across Illinois, Ohio, Michigan, and Indiana.

Stellantis stated that the decision to move some production from Canada reflects ongoing challenges in the trade environment. Prime Minister Mark Carney acknowledged that U.S. tariffs are influencing investment decisions in the North American auto sector. He emphasized the need for a stable trade framework following the review of the Canada-United States-Mexico Agreement.

Response from Local Officials and Unions

Lana Payne, president of Unifor, the union representing Stellantis employees, voiced concerns over the job losses, urging the government to advocate for Canadian auto jobs. Brampton Mayor Patrick Brown expressed disappointment over the company’s move, framing it as a setback to previous commitments made to workers.

Mark Stewart, the former chief operating officer of Stellantis, had previously assured both government officials and the public that the Brampton plant would reopen following adjustments to accommodate new models. However, Stellantis has not disclosed specific plans regarding the future of the Brampton facility.

Investments in U.S. Facilities

Stellantis is allocating significant funds to enhance its operations in the U.S., which includes:

• US$600 million to revive the Belvidere, Illinois plant, focusing on Jeep Compass and Cherokee production by 2027.
• US$400 million to shift truck production from Belvidere to Toledo, Ohio, by 2028.
• US$100 million for upgrades to the Jeep plant in Warren, Michigan, to incorporate electric vehicles and new SUV models.

The tariffs established by the U.S. administration aim to promote domestic manufacturing, raising concerns among Canadian officials and industry leaders about the future of the auto industry in Canada. Ontario hosts several automotive plants, including those owned by Ford, General Motors, and Toyota, as the sector continues to adapt to these evolving trade policies.