Ottawa had threatened suit over Brampton Jeep Compass pledge
Stellantis told Unifor that the company is considering closing and selling its Brampton, Ontario assembly plant, Unifor President Lana Payne said Thursday. The Toronto-area facility has been idle since 2024 for retooling that was originally intended to prepare for production of a next-generation Jeep Compass starting in early 2026.
Payne said Stellantis informed the union this week that the company is exploring closing the factory and selling the Brampton site. “What the company has indicated is its intent to open discussions with another firm” about a sale, Payne said. “To say that we are disappointed would be an understatement. This is a gut punch to our union and to our members.”
The disclosure escalates a year-long dispute between Ottawa and Stellantis over the company’s pledge to assemble the Jeep Compass in Brampton after Canadian governments contributed hundreds of millions of dollars to modernize the Brampton and Windsor, Ontario factories. Canadian officials have threatened to sue Stellantis for failing to meet its commitment, and the two sides have been in talks for nearly a year as Ottawa attempts to recoup the cash it provided for Brampton retooling.
Stellantis last year said it would shift manufacturing to Illinois as pressure mounted from Trump for car companies to move operations to the United States. The White House has said a threatened 50% tariff on certain Canadian goods is required because of what it describes as Canada’s mistreatment of U.S. auto imports.
A Stellantis spokeswoman declined to comment on Payne’s remarks, citing the pending start of negotiations on a new collective agreement with Unifor. “Our focus remains on finding a sustainable manufacturing solution for Brampton,” the spokeswoman said, without elaborating. A spokeswoman for Canadian Industry Minister Melanie Joly did not respond to a request for comment.
Payne said she went public with Stellantis’s plans because Unifor’s members “need and deserve to know what we are up against right now.” The Brampton factory employed up to 3,000 workers at its peak.
The dispute plays out against broader trade tensions. Auto manufacturing in Canada has taken a hit following Trump’s decision to impose a 25% tariff on foreign-made automobiles. Canadian officials are in Washington in talks to ease those auto duties and to avert administration plans to impose a 50% tariff on certain goods starting next week. “We shouldn’t be offering any concessions to the U.S. right now” in those trade talks, Payne said.