The Conservative Party of Canada has urged the government to make public its agreements with Stellantis after the company’s recent decision to move production of the Jeep Compass from Brampton, Ont., to a U.S. facility. The demand was conveyed in a letter to Prime Minister Mark Carney by Pierre Poilievre, the leader of the official opposition.
Poilievre questioned the transparency of the $10 billion promised to Stellantis by the government, highlighting concerns about job security and the lack of clarity for Canadian auto workers. In a separate deal in 2023, Nextstar Energy, a partnership involving Stellantis and LG, secured a $5 billion investment from the federal and Ontario governments for an electric vehicle battery plant in Windsor, Ont. The agreement included up to $15 billion in performance incentives over a decade, with the majority funded by the federal government.
A previous arrangement with Stellantis involved a $3.6 billion commitment from the governments for upgrades at the Brampton and Windsor plants to support electric vehicle and battery production. Poilievre emphasized the importance of understanding the safeguards in place for Canadian workers within these contracts.
Following these developments, the federal Conservative leader has requested an emergency debate on the automotive sector, aiming to address the challenges faced by the industry in Canada. Industry Minister Melanie Joly has warned Stellantis of potential legal action if it fails to honor its commitments, including maintaining operations in Brampton.
Despite uncertainties surrounding Stellantis’ decisions, the government has been engaged in discussions with the company, expressing optimism about future plans for the Brampton plant. Efforts to clarify the funding provided to Stellantis are ongoing, with details yet to be fully disclosed by the federal and Ontario governments.
The situation underscores the complexities and challenges facing the automotive industry in Canada, as stakeholders navigate through evolving circumstances and strive to protect the interests of workers and the broader economy.
