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NewsWhile Stellantis Moves Some Production to the U.S., Honda Confirms Commitment to...

While Stellantis Moves Some Production to the U.S., Honda Confirms Commitment to Canada

In parallel to Stellantis moving production of the next Jeep Compass to the U.S., Honda reiterates its commitment to Canada and celebrates the 11 millionth locally built model.

  • Stellantis announced yesterday that the next Jeep Compass won’t be made in Brampton, Ontario, after all.

  • At the same time, Honda celebrates its 11 millionth vehicle produced in Canada.

  • Honda is the second-largest automaker by production in Canada, behind Toyota.

Amid the news that Stellantis will move production of the next Jeep Compass to the United States from Canada, Honda reaffirms its commitment to manufacturing in Ontario.

Due to economic uncertainty and the trade war with the United States, a few automakers have put investments into Canada on hold.

Starting in February, Stellantis paused the retooling of its Brampton Assembly plant in Ontario, which was in the process of transitioning from the production of the previous-generation Dodge Charger, Challenger, and Chrysler 300 to the upcoming Jeep Compass.

Now, the company has announced a new U.S. development plan that will see the largest investment of its history. One part of this plan is moving the production of the future Compass to Belvidere in Illinois, leaving the Brampton factory without any prospective products.

2026 Jeep Compass | Photo: Jeep

Stellantis says it continues to invest in Canada, notably by adding a third production shift at its Windsor assembly plant, which will manufacture both the electric and gasoline versions of the new Dodge Charger in 2026, along with all of the Chrysler minivans.

The automaker claims to have plans for the Brampton factory, which it will share after further discussions with the Canadian government.

In theory, this decision shouldn’t affect the automaker’s status for Canadian counter tariffs in the auto sector, but it is too early to tell for certain.

Indeed, Ottawa set up its countermeasures in a way that automakers who produce locally aren’t affected so long as they don’t reduce their production in Canada below 2024 levels in favour of American imports. Since the Brampton factory was idled back in 2023, it shouldn’t count toward Stellantis’ Canadian production baseline.

In parallel to all this, Honda published a press release celebrating the production of its 11 millionth vehicle in Canada, a red 2026 Civic Hybrid.

In it, Honda reiterated its commitment to manufacturing in Canada, saying: “We remain committed to Canada and its robust manufacturing ecosystem, with Ontario’s business-friendly environment continuing to foster our growth and innovation”.

Stellantis Announces $13 Billion U.S. Investment, Shifts Jeep Compass from Canada

As a reminder, Honda has had a manufacturing presence in the country since it opened its first plant in Alliston, Ontario, back in 1986.

Now, the automaker’s Canadian facilities make the Civic and CR-V, two of its most popular products in North America. In fact, Alliston makes more CR-Vs than any other factories in the world.

This has helped Honda become the second-largest automaker in terms of production volume in Canada, behind Toyota but in front of Stellantis.

The contrast between both automakers’ actions is striking, showing how unstable the Canadian auto industry has become over the last few months.

Source: Automotive News

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