Stellantis pauses factory conversion in Ontario

Stellantis has reportedly halted the conversion of its plant in Brampton in the Canadian province of Ontario in order to rethink its strategy for North America. The plant in Brampton is currently being converted to build electric and petrol vehicles for Jeep.

According to a Bloomberg report, work in Brampton has been on hold since last week. “As we navigate today’s dynamic environment, Stellantis continues to reassess its product strategy in North America,” the company explained by email. However, the halt does not change the announced investment plans. The further investments concern the plant and a development centre, both of which are located in Windsor, Ontario.

In Brampton, for example, the next-generation Jeep Compass is to be built as a petrol and electric car for North America. In Europe, the Compass is to be built on the basis of the STLA Medium in Melfi, Italy. The premiere in this country is therefore not affected by the processes in Canada.

According to Bloomberg, Stellantis employs around 3,000 people in Brampton. It was announced back in 2022 that operations would run in three shifts after the conversion once it has reached full capacity. The trade union Unifor described the “unexpected announcement” as a cause for great concern. “The chaos and uncertainty plaguing the North American auto industry, which is under the constant threat of tariffs and a dismantling of EV regulations from the US, are having real-time impacts on workers and corporate decisions,” said Unifor President Lana Payne.

Due to the paused work, the union fears that the rebuild schedule cannot be adhered to and that the start of production will be delayed. According to Unifor, a delayed start in Brampton would have an impact on local suppliers and their employees.

Stellantis did not explain exactly what the review of the product strategy in North America consists of. In view of US President Trump’s new policy, it is highly likely that it will be about sales planning in general if cars built in Canada are subject to high tariffs when imported into the USA. On the other hand, it is also possible that Stellantis is rethinking the planned drive mix, as not only are numerous support programmes for electric mobility in the USA on hold, but the US authorities will not be procuring any new electric cars or are even removing existing electric cars from their fleets.

bloomberg.com