Breaking: Stellantis hits pause on $1.3B Brampton Assembly retooling

Article content

Citing the current “dynamic environment” in the auto sector, Stellantis announced Thursday it’s freezing all activity at its Brampton Assembly Plant, effective immediately, to re-evaluate its strategy for the launch of the next-generation Jeep Compass.

Article content

Article content

But in a statement, a company spokesperson said the move “does not change our previously announced investment plans for Brampton.”

Article content

The industrial plant is currently idle and had been undergoing a $1.3-billion retooling to produce the Compass in gas, hybrid and fully electric versions.

“As we navigate today’s dynamic environment, Stellantis continues to reassess its product strategy in North America to ensure it is offering customers a range of vehicles with flexible powertrain options to best meet their needs,” Lou Ann Gosselin, Stellantis’s head of communications-Canada, said in an email to the Windsor Star.

“As a result, the company is temporarily pausing work on the next generation Jeep Compass, including activities at the Brampton Assembly Plant.

“The next generation Jeep Compass, the brand’s most globally available model, will debut in Europe with production beginning in Melfi (Italy) this year.”

Gosselin added the “temporary” pause and market re-evaluation will have no impact on operations at the Windsor Assembly Plant. The company made no mention of the Trump administration’s threatened auto tariffs being a factor in its decision.

Stellantis didn’t indicate how long the pause at Brampton would last. The plant, which employs about 3,000 workers, has been idle for retooling since Dec. 22, 2023.

Article content

The North American version of the Compass was previously scheduled to begin production in the fourth quarter of 2025 and ramp up volumes in early 2026.

“The company has reassured the union that vehicle production plans are still in place for Brampton, although the timing of this announcement raises very serious concerns for Unifor members both in the plant doing the retooling work and those on layoff,” said Unifor national president Lana Payne.

“The chaos and uncertainty plaguing the North American auto industry, which is under the constant threat of tariffs and a dismantling of EV regulations from the United States, are having real-time impacts on workers and corporate decisions.”

Unifor Local 444 president James Stewart, who represents thousands of Windsor Assembly workers, added the company has told the union they’re still committed to returning Brampton to a three-shift operation and are targeting early next year to begin production.

Stewart told the Star that Stellantis officials said the pause was related to the company having to make some decisions on the powertrain options for the Compass.

Article content

“There’s no doubt the Trump administration’s EV policies are having an effect,” said Stewart, who feels a February 2026 production date may still prove a bit ambitious.

“This is more about the changes in the EV policy than tariffs. The company is trying to determine what powertrains make sense for the market.”

The Brampton plant is being retooled under terms of Unifor’s 2023 collective agreement with Stellantis and with support from both the provincial and federal governments.

In the meantime, Unifor members are getting enhanced income support during the retooling period. With that timeline now extended, Unifor officials said it’s unclear whether those extra payments will also be extended.

“Our members in the auto sector understand the ups and downs of the industry, so a timing delay isn’t out of the ordinary,” Payne told the Star.

“However, this is not an ordinary time and because of the threats and chaos, we know our members are feeling additional worry right now.

“I want to remind everyone that Stellantis is contractually committed to this vehicle program, and we expect the company to live up to its commitments to our members and to the governments of Canada and Ontario.”

Article content

The Compass is to be built on the STLA medium platform and is set to replace a model that was built in Mexico.

“It’s unlikely it would be moved to the States because they’re so far down the road in development,” said auto analyst Sam Fiorani, AutoForecast Solutions vice-president of global vehicle forecasting.

Fiorani agreed this announcement seems more related to market forces at play than concerns about potential auto tariffs.

“They’ll focus on hybrids and gas-powered models,” Fiorani said. “The electric version will develop as the market matures and then we’ll see more of them roll out.”

Fiorani said Stellantis is testing the waters right now with the new Wagoneer S and the Jeep Recon fully electric models.

“The market is waiting to see what happens to incentives, emissions and anything else that props up the sale of electric vehicles,” Fiorani said.

[email protected]

Twitter.com/twitter.com

Article content