Ontario Premier Doug Ford has voiced strong opposition to reports that Stellantis is in discussions with a Chinese automaker, Zhejiang Leapmotor Technology, about potentially manufacturing Chinese electric vehicles at the Brampton assembly plant in Canada. The talks, as per Bloomberg News and Reuters, follow Stellantis’ acquisition of a 21% stake in Leapmotor for $1.6 billion in 2023, establishing a joint venture with a majority ownership by Stellantis.
Lana Payne, president of Unifor, the union representing Stellantis workers, confirmed the exploratory talks, including the possibility of collaborating with Leapmotor for production at the Brampton plant. Premier Ford, in an interview with CBC News, expressed strong disapproval, stating that such a deal would undermine Ontario autoworkers and contradict commitments made by the federal government.
The Brampton plant, which employed approximately 3,000 workers, ceased production in late 2023 for retooling to accommodate the Jeep Compass model. Stellantis later relocated the production of this model to the U.S. due to tariff implications under the Trump administration. Stellantis has yet to make any official announcements regarding the reported discussions with Leapmotor.
Unifor raised concerns about potential partnerships with Chinese manufacturers, warning that such arrangements could lead to displacement of workers and impact the Canadian auto industry negatively. Payne urged the government to establish policies supporting domestic manufacturing and employment.
Ford emphasized the importance of manufacturing cars in Ontario with local labor and parts. He highlighted the need for foreign companies, like Chinese manufacturers, to invest in building vehicles within the province, using local resources and workforce. Ford is currently in Texas to promote provincial trade efforts alongside Ontario Economic Development Minister Vic Fedeli.
Recently, CBC News revealed details of a $529 million deal between the Canadian government and Stellantis in 2022, aiming to safeguard jobs at the Brampton plant until 2035. However, exceptions permit closures under certain conditions. A dispute resolution process was initiated after Stellantis relocated Jeep Compass production, with ongoing engagements between the government, Stellantis, Unifor, and Ontario to ensure continued investment and job protection in the auto sector.
The federal government’s trade agreement earlier this year allowed for the import of 49,000 Chinese EVs into the Canadian market at a reduced tariff rate, reflecting a policy shift from previous high tariffs. Efforts are underway to secure future investments in the Canadian automotive industry, emphasizing local production and employment.