The Conservative Party of Canada is urging the federal government to make public its agreements with Stellantis after the company’s recent decision to abandon plans for manufacturing the Jeep Compass in Brampton, Ontario, opting for a U.S. location instead. The request was conveyed in a letter addressed to Prime Minister Mark Carney by Pierre Poilievre, the leader of the official opposition. Poilievre expressed concerns about the lack of transparency surrounding the $10 billion commitment made by the government to Stellantis, questioning the assurances given regarding job retention in Brampton.
In 2023, a partnership between Stellantis and LG, known as Nextstar Energy, struck a deal with the federal and provincial governments for a $5 billion electric vehicle battery facility in Windsor, Ontario. The agreement included performance incentives totaling up to $15 billion over a decade, with a significant portion funded by the federal government. These incentives were tied to the production of batteries by Stellantis, with specific conditions on the amount per kilowatt hour.
A prior arrangement had been made the year before between Stellantis and the governments to allocate $3.6 billion for upgrades at the Brampton and Windsor plants to support electric vehicle and battery production. Poilievre emphasized the importance of understanding the protections, if any, provided in the contracts with Stellantis for Canadian auto workers.
Following these developments, the federal Conservative leader announced plans for a formal request to the Speaker of the House of Commons for an emergency debate on the state of Canada’s automotive industry. There were also calls for the Standing Committee on Industry and Technology to reconvene for a discussion on the automotive sector, although Conservative MP Kathy Borrelli declined to comment on the matter.
Industry Minister Melanie Joly warned Stellantis of potential legal action if it failed to fulfill its commitments to Canada, particularly regarding maintaining operations in Brampton. Stellantis had paused retooling efforts in 2023 due to external factors, but expressed intentions to resume operations at the Brampton plant after consultations with the federal government.
Details of the funding provided to Stellantis were sought from the federal government, with specific inquiries about the amounts disbursed thus far. The government of Ontario was also approached for information but had not responded at the time of reporting. Transparency on funding for individual battery companies was limited to avoid jeopardizing contractual obligations and competitive positions.
