Stellantis cancels Compass production in Ontario; future plans hinge on USMCA renegotiation.
Canadian officials seek to maintain auto jobs as trade tensions with the US continue.
Federal and provincial leaders are coordinating support for laid-off workers at the Brampton plant.
Stellantis will decide on the future of vehicle production at its Brampton, Ontario plant based on the outcome of the US-Mexico-Canada Agreement (USMCA) review, Canadian Prime Minister Mark Carney said Thursday.
The automaker recently cancelled plans to manufacture the Jeep Compass at the Brampton facility, shifting production to Illinois. The move avoids potential US tariffs on non-domestic vehicle components. Carney stated he spoke with Stellantis CEO Antonio Filosa before the announcement and was assured the company is evaluating alternative models for the site.
Stellantis Announces $13 Billion U.S. Investment, Shifts Jeep Compass from Canada
“That decision would be taken in the context of the finalization of the USMCA,” Carney said during a press conference in Toronto. The trilateral trade deal is scheduled for review in 2026.
The Brampton plant has been idle since late 2023 for retooling, and many workers remain on temporary layoff. Carney noted that the federal government is working with Stellantis, labour representatives, and the Ontario government to ensure continued support for the affected workforce.
Within 24 hours of Stellantis’ announcement, threats of a potential lawsuit from Ottawa may have played a part in tempering the aftermath.
Ottawa Could Sue Stellantis Over the Production of the Jeep Compass Being Moved to the U.S.
While Stellantis did not comment directly on the Brampton announcement, a spokesperson said this week that Canada remains “very important” to the company. The automaker also confirmed it is expanding operations at its Windsor, Ontario facility by adding a third shift.
The current trade environment remains a concern for Canadian officials. Under the Trump administration, the US imposes tariffs on non-US-made portions of vehicles from Canada and Mexico, despite existing USMCA provisions. Canadian negotiators are currently prioritizing steel and aluminum tariffs, where there may be more room for agreement.
Carney stressed that the 2026 USMCA review will impact key sectors, including automotive and forestry. He also reaffirmed Canada’s current strategy of diplomatic engagement over retaliation. “There are times to hit back and there are times to talk. And right now is the time to talk,” he said.
Later in the day, Carney was expected to meet with Ontario Premier Doug Ford, who has previously called for stronger retaliatory actions in response to Stellantis’ decision.
Source: Bloomberg
