The Conservative Party of Canada has urged the federal government to disclose its agreements with Stellantis after the company revealed its decision to relocate the production of the Jeep Compass from Brampton, Ont., to a U.S. plant. The request was made in a letter sent to Prime Minister Mark Carney by opposition leader Pierre Poilievre, questioning the lack of transparency surrounding the $10 billion promised to Stellantis.
In a separate deal in 2023, Nextstar Energy, a collaboration between Stellantis and LG, secured a $5 billion investment for an electric vehicle battery plant in Windsor, Ont., with up to $15 billion in performance incentives over a decade, a portion of which is subsidized by the federal government.
A previous agreement between Stellantis and the governments of Ontario and Canada aimed at supporting electric vehicle and battery production at the Brampton and Windsor assembly plants was also mentioned. Poilievre emphasized the need for clarity on the protections for Canadian auto workers in the government’s contracts with Stellantis.
Furthermore, the Conservative leader is expected to request an emergency debate in the House of Commons on the state of the automotive sector, coinciding with calls to reconvene the Standing Committee on Industry and Technology for discussions on the industry’s challenges. Industry Minister Melanie Joly warned of legal action against Stellantis for not upholding its commitments to maintain operations in Brampton.
Despite the uncertainties, Stellantis assured plans for the Brampton plant are in progress, with discussions ongoing with the federal government. The company’s reassessment of its product strategy following tariffs imposed by former U.S. President Donald Trump led to the suspension of retooling efforts in 2023.
Details on the funding provided to Stellantis remain undisclosed, with inquiries made to the federal and Ontario governments awaiting responses. The federal government confirmed a partial disbursement of funds to Nextstar but cited confidentiality concerns regarding disclosing specific amounts due to contractual and competitive reasons.