Stellantis’ Plan For Canada Looks Less Like A Car Factory And More Like A Chinese IKEA, Says Official

After closing its Brampton factory in Ontario, Canada, and then backtracking on its commitment to build the new Jeep Compass there, Stellantis hasn’t exactly been in the good graces of local labor unions and lawmakers. It’s now facing a firestorm of criticism following recent reports that it could begin assembling EVs for its Chinese partner Leapmotor at the site.

Read: Stellantis Still Wants To Build A New Car In Canada After Canceling Compass

According to unnamed sources, the Brampton facility could return to operation thanks to a newly secured trade agreement between Canada and China, which would allow Chinese EVs to be sold locally. Stellantis hasn’t commented on the reports, but many are concerned the site would simply be assembling knockdown kits, rather than manufacturing EVs from scratch.

“These vehicles are completely manufactured in China with Chinese components, then partially disassembled and brought here to be reassembled by several hundred workers, like IKEA furniture kits,” Automotive Parts Manufacturers’ Association (APMA) president Flavio Volpe told CTV News.

“That’s completely different from making cars here and buying $3-billion worth of parts a year in Canada and employing 10,000 to 12,000 employees,” he added.

Politicians Aren’t Impressed

Canada’s federal Industry Minister Melanie Joly, as well as Ontario Premier Doug Ford, have both rejected the reported plans. Similarly, Unifor national president Lana Payne says Stellantis needs to stick to its promise of reopening the plant to its original capacity.

“I think the federal government needs to be clear that knock-down kits and sales from knock-down operations are imports,” Volpe added. “They need to clarify that so that the Chinese understand the rules of the game here.”

Stellantis has been critical in Leapmotor’s global expansion after purchasing a 20 percent stake in the Chinese company in 2023. Building these vehicles in Canada could also potentially offer a pathway into the US market.

If Stellantis is interested in ramping production back up to previous levels at the Brampton site, it will need to build vehicles with unimpeded access to the United States. As many as 12,000 people could be employed at the site, and require up to $3 billion in annual purchases from the nation’s parts supply chain.