Canada Shames Jeep for $13B Investment in America
Canada may feel like Stellantis and Jeep took its money and accelerated across the border. The federal government gave Stellantis over $220 million to upgrade plants to build the Jeep Compass in Ontario. However, Stellantis decided to build SUVs in America instead.
Canada shames Jeep for moving production to America
The $220 million that Canada reportedly paid Stellantis to upgrade Jeep plants in Ontario is only a small chunk of change included in the overall plan to now invest $13 billion in American production.
In a move to dodge tariffs, Stellantis decided to build the Jeep Compass, Cherokee, and a new mid-size truck in America after planning to do so in Canada.
According to CBC, Canada and Stellantis agreed on a deal to provide Stellantis with roughly $529 million to update plants in Ontario to produce gas-powered and electric vehicles. Allegedly, Stellantis received $220 million before making the decision to build in America instead.
This makes the future of employment for 3,000 Canadian autoworkers uncertain. Public officials are outraged as contacts included job guarantees. Prime Minister Mark Carney shares that the government clearly expects Stellantis to fulfill the undertakings it agreed to.
Also, the government claims Stellantis can not be allowed to pull out of its commitments to Canadian workers. Saving Brampton Assembly is now the top priority.
A Stellantis spokesperson shared that the automaker continues working constructively with government partners and other stakeholders on a plan for Brampton to find viable solutions.
Canada is important to Stellantis, and it plans to build a sustainable, long-term future for automotive manufacturing.
However, what if Canada demands repayment? Some of its contracts and funding deals are worth $15 million. The province pledged to provide $513 million overall.