Stellantis

Oct. 16 (UPI) — Ontario’s Premier Doug Ford said he received an assurance from Jeep maker Stellantis’ Canadian chief the company will keep its Canadian plant open for future manufacturing.

Ford said Wednesday that the company’s Brampton auto plant will continue running despite Tuesday’s revelation that Jeep Compass production will shift to an American facility.

“I want to keep the Brampton plant open, no matter what,” Ford said following talks with Stellantis Canada president Jeff Hines. “He’s given me his word, they are going to keep it open.”

Stellantis, the parent company of multiple auto brands including Jeep and Chrysler, announced this week plans to invest billions in the United States to reopen facilities and add roughly 5,000 U.S. jobs plants in Illinois, Ohio, Michigan and Indiana over the next four years.

In April, Stellantis put a hold on production of its new electric SUV at its Canadian plant on Williams Parkway in the wake of tax-like tariffs imposed by U.S. President Donald Trump.

It was set to move forward with production later this year.

“Our government will continue to use every tool we have, including through our $20 million investment in POWER Centers to support displaced workers, including through retraining to re-enter the workforce as quickly as possible,” Ford posted Wednesday on X.

On Tuesday, Ford spoke with Canada’s Stellantis chief who reportedly said the company is “going to postpone it for a year” and claimed Stellantis will “find a new model” to build at the Canadian site.

“They are going to see what products they are going to put in there,” said Ford.

Ford, the leader of Ontario’s Progressive Conservative Party, added plans exist to add a third shift to a Windsor plant to possibly transfer up to 3,000 or less workers.

A Stellantis spokesperson pointed to its 100-year history in Canada and said Britain’s fellow commonwealth nation was “very important” to Jeep’s parent owner.

“We have plans for Brampton and will share them upon further discussions with the Canadian government,” the company stated.

Meanwhile, Canada’s Industry Minister Melanie Joly reminded CEO Antonio Filosa in a letter that Stellantis made critical commitments to Canadians.

“While the current U.S. tariff environment is creating complex challenges, Stellantis has made important commitments to Canada and to its workforce,” Joly wrote.

Joly said if Stellantis chooses not “to respect its obligations,” the Canadian government would “act in the interests of all Canadians and hold the company to full account, and exercise all options, including legal.”

Stellantis announced a $13bn investment in the US, which will see production of the Jeep Compass move to the US from Canada.

Canada has threatened legal action against carmaker Stellantis NV over what Ottawa says is the company’s unacceptable plan to shift production of one model to a United States plant.

On Wednesday, Minister of Industry Melanie Joly sent a letter to Stellantis CEO Antonio Filosa noting that the company had agreed to maintain its Canadian presence in exchange for substantial financial support.

“Anything short of fulfilling that commitment will be considered a default under our agreement,” she said. If Stellantis did not live up to its commitment, Canada would “exercise all options, including legal”, she said.

Stellantis announced a $13bn investment in the US on Tuesday, a move that it said would bring five new models to the market. As part of the plan, production of the Jeep Compass will move to the US state of Illinois from a facility in Brampton in the Canadian province of Ontario.

A copy of the letter was made available to the Reuters news agency. The existence of the letter was first reported by Bloomberg.

Stellantis had paused retooling of the Brampton plant in February, shortly after US President Donald Trump announced tariffs against Canadian goods, upending the highly integrated North American auto industry.

In a statement on Tuesday night, Canada’s Prime Minister Mark Carney said Ottawa had made clear it expected Stellantis to fulfil the undertakings it had made to the workers at the plant.

“We are working with the company to develop the right measures to protect Stellantis employees,” he said.

Ontario is Canada’s industrial heartland and accounts for about 40 percent of its national gross domestic product (GDP).

“I have spoken with Stellantis to stress my disappointment with their decision,” Ontario Premier Doug Ford said on social media on Wednesday.

Stellantis spokesperson LouAnn Gosselin said the company was investing in Canada and noted plans to add a third shift to a plant in Windsor, Ontario.

“Canada is very important to us. We have plans for Brampton and will share them upon further discussions with the Canadian government,” she said in an emailed statement.

THE BOSS of an iconic car brand has revealed a major update on its merger with a rival, as the company admits the EV push is hurting sales.

Despite rumours of a potential tie-up between Stellantis and Renault, both companies have denied seeking a partnership.

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John Elkann, Stellantis Chairman, told the Financial Times: “We are not discussing any merger.”

Management at the automotive giant has been turbulent following the resignation of the former CEO, Carlos Tavares, who they still haven’t replaced.

The automotive giant currently oversees many carmakers such as Peugeot, Fiat and Vauxhall.

However, Stellantis has several underperforming brands, such as Chrysler, described as “a shadow of its former self,” according to motor1.com

Another failing car manufacturer is Abarth, which has seen revenues drop during its push to go fully electric.

This has caused major concern at Stellantis, adding to the company’s decision not to get involved in a massive merger.

Last year, the Auto conglomerate recorded a 12 per cent drop in shipments, which they blamed on “temporary gaps in product offerings”.

On the other hand, the Renault group reported their highest sales.

The two major companies share a common ground regarding the future of cars in Europe.

Both share concerns over strict emission regulations negatively impacting their profit and production of gas-powered city cars.

The European Union recently granted automakers an extension to meet their emission targets.

However, by 2030, stricter regulations will come into force, banning the sale of new cars with harmful emissions across the EU.

This comes after Europe’s second-largest carmaker halted production of an iconic model as its EV lineup faces “deep trouble”.

An initial manufacturing break at Stellantis has now been extended as bosses report a collapse in demand for electric cars.

The Fiat 500 was one of the vast company’s most successful and beloved models across two production runs lasting a collective 35 years.

Dating back to 1957, it has sold more than six million units between its two iterations.

However, the 500e, unveiled in 2020 as an electric alternative, has proved less popular.

The model is intended as the long-term successor to the 500 beyond the 2035 ban on petrol and diesel car sales.

But stuttering demand has now forced a pause in its production.

The latest data suggest that both the petrol and electric 500 sol 74,885 units from January to July.

That’s almost a quarter down on the same period last year.

Bosses told Autocar that poor sales were “linked to the deep difficulties experienced in the European EV market by all producers.”

They have also reportedly told union reps that the electric car segment is facing “deep trouble” more generally.

Fiat CEO Olivier François said: “We obviously, like everyone else, thought that the world would go electric faster and the cost of electrification would go down faster.

“But we couldn’t imagine that Covid would happen, shortage of raw materials would happen [and] the European Society – not all, not the youngest part – would turn their backs on the sustainable solutions.

“But this is the reality. We have to face those realities.”