The Conservative Party of Canada has urged the federal government to release its contracts with Stellantis publicly after the company’s recent decision to shift production of the Jeep Compass from Brampton, Ont., to a U.S. plant. The request was conveyed in a letter to Prime Minister Mark Carney by Pierre Poilievre, the leader of the official opposition, expressing concerns about the lack of transparency regarding the $10 billion pledged to the company.
In 2023, Nextstar Energy, a venture between Stellantis and LG, finalized a $5 billion deal for an electric vehicle battery plant in Windsor, Ont., with significant performance incentives over a decade, mainly supported by the federal government. The incentives were structured on a per unit production basis, capped at $45 US per kilowatt hour (kWh), with a requirement that incentives are tied to the production and sale of batteries by the company.
A previous agreement between Stellantis and the governments of Ontario and Canada, signed a year earlier, aimed at investing $3.6 billion in upgrading the Brampton and Windsor assembly plants for electric vehicle and battery manufacturing. Poilievre emphasized the necessity for clarity on the safeguards for Canadian auto workers in the government’s contracts with Stellantis.
Following the events, the federal Conservative leader is seeking an emergency debate on the automotive industry’s state in Canada. The party is also advocating for the reconvening of the Standing Committee on Industry and Technology to address the challenges faced by the automotive sector. Industry Minister Melanie Joly has warned Stellantis of legal action if it fails to honor its commitments to Canada, including maintaining its presence in Brampton.
Despite uncertainties surrounding the production shift, Stellantis reassured plans for the Brampton plant, pending discussions with the federal government. Minister Carney confirmed ongoing engagement with the company, indicating efforts to facilitate the retooling of the facility. The funding details provided to Stellantis are being sought by CBC News, with inquiries directed at both the federal government and the government of Ontario.
