The Conservative Party of Canada has urged the federal government to make public its contracts with Stellantis after the company’s recent decision to shift production of the Jeep Compass from Brampton, Ont., to a U.S. plant. The official opposition leader, Pierre Poilievre, sent a letter to Prime Minister Mark Carney demanding transparency on the $10 billion promised to Stellantis and the job commitments for Brampton workers.
In 2023, Nextstar Energy, a partnership between Stellantis and LG, secured a $5 billion deal with the federal and Ontario governments for an electric vehicle battery plant in Windsor. Stellantis stands to receive up to $15 billion in incentives over a decade, with the majority funded by the federal government, based on per unit production and capped at $45 US per kilowatt hour. The agreement mandates incentives solely for the batteries produced and sold by the company.
A previous agreement involving $3.6 billion was reached with Stellantis and the governments to enhance the Brampton and Windsor assembly plants for electric vehicle and battery production. Poilievre emphasized the importance of understanding the protections for Canadian auto workers within these contracts.
Following the development, the federal Conservative leader is seeking an emergency debate in the House of Commons and the reconvening of the Standing Committee on Industry and Technology to address the automotive sector’s challenges. Industry Minister Melanie Joly warned Stellantis of potential legal action if it fails to honor its commitments to Canada, particularly maintaining its presence in Brampton.
Stellantis had paused the retooling of the Brampton plant in 2023 due to uncertainties in product strategy following tariffs imposed by former U.S. President Donald Trump. The company intends to reveal its future plans for the plant after discussions with the federal government. Carney confirmed that Stellantis is exploring new vehicle options for production in Brampton.
Efforts to ascertain the funding provided to Stellantis by the government have been made, with details on payments yet to be disclosed. The federal government has contributed $268 million of the committed $500 million to the Nextstar project as of March 31, 2024, with additional support from the Strategic Innovation Fund. Disclosure of specific funding amounts for battery companies is restricted to protect contractual obligations and competitive positions.
The situation continues to evolve, with ongoing discussions and actions being taken to address the challenges faced by the automotive sector in Canada.