A controversy has erupted in Canada's automotive industry. Stellantis abruptly announced plans to assemble electric vehicles from Chinese automaker LEAPMOTOR at its Brampton plant, which has been idle for over two years.
The announcement immediately sparked strong opposition locally. The provincial government expressed firm resistance, while labor unions launched fierce protests, triggering a full-blown crisis of confidence.
Local stakeholders are outraged that Stellantis received 529 million Canadian dollars in subsidies but now plans to assemble Chinese vehicle kits instead of producing Jeep models as promised. The original agreement stipulated that the plant must remain operational until 2035, safeguarding thousands of jobs.
However, in October 2025, Stellantis effectively broke its commitment by moving Jeep production to Illinois, USA. With the factory still dormant, the company proposed a new solution: manufacturing LEAPMOTOR EVs using Complete Knock Down (CKD) assembly methods.
The proposal faced immediate and comprehensive resistance from Canadian stakeholders. Ontario Premier Doug Ford declared the plan unacceptable. Unifor's national president criticized the move, stating that CKD assembly creates minimal employment compared to traditional manufacturing. The Automotive Parts Manufacturers' Association warned that the CKD model would marginalize local suppliers.
Stellantis' urgency to advance the LEAPMOTOR project coincides with Canada's reduction of tariffs on Chinese EVs from 100% to 6.1% this January, creating market access opportunities. Having invested 1.5 billion euros in 2023 for a 20% stake in LEAPMOTOR, Stellantis established a joint venture to sell vehicles globally. LEAPMOTOR's focus on affordable EVs priced around $9,500 addresses a gap in Stellantis' North American product lineup.
The CKD approach allows Stellantis to circumvent tariffs, rapidly deploy products, and maintain low costs. However, the strategy has created political complications in Canada, where it's perceived as subsidy misuse, job abandonment, and production outsourcing.
Stellantis faces a strategic dilemma: while partnering with LEAPMOTOR offers rapid cost reduction for EV production, the move has triggered employment and political pressures in Canada. The company's attempt to balance Chinese technological advantages with local commitments has resulted in dissatisfaction from multiple stakeholders.
The future of the LEAPMOTOR project in Canada remains uncertain. Stellantis must weigh the appeal of affordable EVs against strong opposition from Canadian authorities and labor unions. With export channels to the US effectively blocked, the project faces significant challenges from its inception. The outcome will not only determine the fate of a single factory but could also influence the broader pathway for Chinese EV manufacturers entering the North American market.
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