Stellantis, the world’s fourth-largest carmaker, has made a similar proclamation on its production strategy. It will move the production of its planned 2022 Jeep Compass launch from Brampton, Ontario, to Illinois, USA. This decision follows on the heels of a $13 billion series of investments by the automaker into manufacturing capabilities in the U.S. Ontario Premier Doug Ford and numerous local officials have violently condemned the action. They are deeply concerned that it will decimate Canadian jobs and the automotive sector throughout the Great Lakes region.
A union robocall delivered the news to workers at the Dominion assembly plant in Brampton. It ensured that the work they had been counting on would not return. Stellantis had made same commitments as recently as March that Brampton would be the future home of the Jeep Compass, only to backtrack on those plans. In 2023, the company shuttered one factory and announced the layoffs of some 3,000 employees. This strategic pivot was a big surprise for us, as they transformed their business model.
Canada’s Minister of Innovation, Science and Industry François Legault and International Business and Commerce Minister Melanie Joly jointly sent a letter to Stellantis executives. They cautioned that if they did not make good on past commitments, it would be construed as a default on current deals. This demonstrates just how seriously the Canadian government is taking Stellantis’s decision.
For Ford, that didn’t make the case any less frustrating. He particularly knocked the former president Donald Trump over his influence, or lack thereof, on corporate relocations.
“That guy, President Trump, he’s a real piece of work,” – Ontario Premier Doug Ford
Ford said this kind of bullying warrants strong solutions and true leadership. He stated, “I’m sick and tired of rolling over. We need to fight back.” His remarks shed light on a growing sentiment among Canadian officials. Their real worry, they say, is that Stellantis’s decision to engage in direct action will encourage other automakers to follow suit.
Brampton Mayor Patrick Brown didn’t mince words. He cautioned that if Stellantis’s labor-baiting tactics pay off, other companies will be encouraged to pursue the same playbook.
“If this bullying tactic works with Stellantis I expect it to be replicated to every other automaker that has a presence in Canada and frankly other sectors that the U.S. has an interest in,” – Brampton Mayor Patrick Brown
The impact of Stellantis’s move goes deep beyond the immediate layoffs. Local economies reliant on automotive manufacturing face uncertainty as companies reassess their commitments in Canada amid escalating competition from U.S. investments. This significant shift raises many questions about the future of the Canadian auto industry. Can it pivot in time to the new market realities?
As Stellantis takes its step, the rest of the automotive world is undergoing a massive shift. The industry is moving more towards electric vehicles and allowing for more automation. The company recently completed a major investment in U.S. manufacturing. With this move, the company is making a strategic play to increase its competiveness in the North American market.
Now that the ink is dry on Stellantis’ deal, Canadian stakeholders are still picking up the pieces from the destructive after-effects. We’re very pleased that Premier Ford and Mayor Brown are raising these important alarms. They’re concerned that, as a result of these corporate decisions, Canada risks losing its place in the rapidly changing global automotive landscape.
