Stellantis CEO Confirms Plans to Revive Brampton Plant Amid Government Talks
Stellantis NV remains engaged in active negotiations with the Canadian government and the Unifor union regarding the future of its shuttered manufacturing facility in Brampton, Ontario, according to the automaker's chief executive officer in Canada. Trevor Longley, Stellantis Canada CEO, emphasized the company's desire to find a sustainable path forward for the plant during a recent interview on BNN Bloomberg TV.
Commitment to Canadian Auto Manufacturing
"The reality is that we want to build cars in Brampton. We've been making cars in Canada for 100 years and we want to continue making cars in Canada for the next 100," Longley stated during an appearance at the Canadian International AutoShow in Toronto. This declaration underscores Stellantis's long-term dedication to the Canadian automotive sector, despite recent production shifts that have impacted local employment.
The company announced in October that it was relocating production of the Jeep Compass SUV from Brampton to Illinois as part of a broader US$13 billion investment strategy aimed at strengthening its U.S. operations and navigating tariff challenges. This move has directly affected approximately 3,000 Canadian workers who were previously employed at the Brampton facility.
Government Relations and Tariff Implications
Longley highlighted that Stellantis is "working proactively with our government" and with Unifor, which represents Brampton workers, to address tariff-related issues. "That means that we find solutions for the tariff situations that have been imposed," he explained. Following the production shift, Prime Minister Mark Carney's government reduced the number of U.S.-made vehicles Stellantis can import without facing counter-tariffs.
These retaliatory levies were implemented in response to former U.S. President Donald Trump's tariff measures last year, with exemptions granted to companies that maintain production and investment in Canada. Longley noted that the company is still evaluating future products for the Brampton factory, indicating potential opportunities for revitalization.
Political and Economic Context
Industry Minister Melanie Joly has threatened legal action against Stellantis over the production relocation and has vowed to recover Canadian taxpayer funds that provided financial assistance to the company. This tension reflects broader concerns about protecting domestic manufacturing interests amid global economic pressures.
Last week, Prime Minister Carney unveiled a new automotive strategy designed to safeguard and attract investments from automakers. The plan proposes reforms to the tariff remission program, offering import credits to companies that manufacture vehicles in Canada. These credits can be utilized for tariff-free imports from the U.S. and traded with other firms, potentially incentivizing local production.
Evaluation of New Policies
Longley acknowledged that more details are needed to fully assess the government's new automotive strategy but expressed optimism about its potential benefits. "Anything that protects Canadian industry and Canadian auto production, I think is a positive move," he remarked. He further pointed out that, for many years, importing cars into Canada has been more cost-effective than manufacturing them domestically, underscoring the need for supportive policies to sustain local investment.
The Stellantis executive also commented on Carney's agreement with China, which permits 49,000 electric vehicles to enter Canada at a reduced tariff rate of 6.1 percent. While Longley acknowledged that increased competition can be beneficial, he raised concerns about whether Canada can compete fairly with non-market economies like China, highlighting ongoing challenges in the global automotive landscape.
As discussions continue, Stellantis's efforts to revive the Brampton plant remain a focal point for the future of Canadian auto manufacturing, balancing corporate strategy with governmental and union collaborations to navigate complex economic and regulatory environments.
