The Conservative Party of Canada has urged the federal government to make public its agreements with Stellantis after the company’s recent decision to relocate the production of the Jeep Compass from Brampton, Ont., to a U.S. plant. The demand was articulated in a letter addressed to Prime Minister Mark Carney by Pierre Poilievre, the official opposition leader. Poilievre expressed concerns about the lack of transparency surrounding the $10 billion promised to Stellantis by the government and the implications for Canadian auto workers.
In 2023, Nextstar Energy, a collaboration between Stellantis and LG, sealed a deal with the federal and Ontario governments for a $5 billion electric vehicle battery plant in Windsor, Ont. The agreement entailed up to $15 billion in performance incentives over a decade, with a majority of the funding coming from the federal government. The incentives were structured to be linked to unit production and capped at $45 US per kilowatt hour (kWh), with a stipulation that rewards would only be granted for batteries manufactured and sold by the company.
A previous arrangement, forged a year earlier, allocated $3.6 billion for upgrades at Stellantis’ Brampton and Windsor plants to bolster electric vehicle and battery production. Poilievre emphasized the necessity for clarity on the protections, if any, afforded to Canadian auto workers in the government’s contracts with Stellantis.
The federal Conservative leader’s call for transparency follows his intention to request an emergency debate in the House of Commons on the state of Canada’s automotive sector. The party also advocated for the reassembly of the Standing Committee on Industry and Technology to discuss the industry. Industry Minister Melanie Joly had written to Stellantis’ CEO, Anthony Filosa, warning of legal repercussions if the company failed to fulfill its commitments to Canada, including maintaining its operations in Brampton.
Stellantis’ Brampton plant, which employed approximately 3,000 individuals, ceased operations in 2023 to prepare for Jeep Compass production, a plan that was stalled due to external factors. Despite the recent developments, Stellantis assured plans for the Brampton facility are still on the agenda pending discussions with the federal government. The company’s global head confirmed ongoing efforts to identify a new vehicle for production at the Brampton plant during a press conference attended by Prime Minister Carney.
Efforts to ascertain the total funding disbursed to Stellantis have been met with limited information, with both federal and provincial authorities yet to disclose specific figures. While the federal government has allocated funds to the Nextstar project, details regarding the disbursement remain undisclosed to preserve contractual and commercial confidentiality.