The dilemma of multinational automakers: Trying to cut costs with Leap Motor, but facing local opposition!

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A cross-border auto industry storm has finally exploded in Canada!

Stellantis has suddenly announced that it plans to keep the Brampton plant in Canada idle for two years and assemble Leapmotor electric vehicles from China.

As soon as the news broke, it immediately sparked a local backlash— the provincial government strongly opposed it, unions launched intense protests, and a full-blown trust crisis unfolded.

Taking a CAD 500 million subsidy but not building Jeep, then switching to assembling Chinese knockdown parts—Canada absolutely won’t accept it!

Betraying the commitment! Take a CAD 500 million subsidy but don’t build Jeep—change production to Leapmotor

The Brampton plant has long been Canada’s “headache” in the auto industry, left idle for more than two years.

Previously, Stellantis received CAD 529 million in subsidies from the Canadian government, promised to invest CAD 3.6 billion to upgrade the plant, and mass-produce electric Jeeps.

The agreement is clearly written on paper: the plant must start operations through 2035 to secure thousands of jobs.

But in October 2025, Stellantis directly tore up the commitment and moved the Jeep production line to the U.S. state of Illinois.

Now the plant remains abandoned. Stellantis has floated a new plan: produce Leapmotor electric vehicles from China, using the CKD mode to assemble basic kits from parts.

Together, take a tough stand! The premier + the unions all say “no”

The moment the proposal was exposed, it was met immediately with comprehensive resistance from local Canada.

Ontario Premier Doug Ford made his position clear directly: unacceptable, and firmly opposed!

Unifor union president unleashed angry criticism: this isn’t building cars—it’s just assembling parts, and it hardly creates any jobs!

The Automotive Parts Association also warned: the CKD model would completely push out Canada’s local suppliers.

They believe: traditional full vehicle manufacturers can drive employment for tens of thousands, while parts-assembly requires only a small number of workers.

Seizing the tariff windfall and taking a low-cost foothold in North America

The reason Stellantis is rushing ahead with the Leapmotor project is that the timing conceals a hidden twist.

This January, Canada slashed tariffs on Chinese electric vehicles from 100% down to 6.1%, opening the market doors.

In 2023, Stellantis spent EUR 1.5 billion to acquire a 20% stake in Leapmotor and set up a joint venture to sell cars globally.

Leapmotor focuses on budget-priced electric vehicles around $9,500, which is exactly the product Stellantis lacks most in North America.

By implementing the CKD mode, it can both bypass tariffs and quickly roll out inventory, with extremely low costs.

Strategic embarrassment: Stellantis wants to cut costs, but steps on a political landmine

For Stellantis, partnering with Leapmotor is meant to quickly reduce the cost of electric vehicles and fill in its affordable product lineup.

But in Canada, this turns into a negative example of “cheating on subsidies, abandoning jobs, and outsourcing capacity.”

On one side is Chinese automakers’ technological and cost advantages; on the other is Canada’s employment and political pressure.

Stellantis tried to have it both ways, but ended up pushing itself into a dilemma that displeases both sides.

Will Stellantis abandon the Leapmotor Canada project?

On one side is the huge temptation of budget electric vehicles; on the other is the strong resistance from the Canadian government and unions.

And with the U.S. blocking the export route again, this project has been struggling from the very beginning.

Will Stellantis make compromises and concessions, or push forward stubbornly?

This is not only about the fate of a single plant—it also affects the overall path for Chinese electric vehicles to enter North America.

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Byline: Shi Xiuzhen SF183