Amid Trump’s threat to crush Canada’s auto industry, Brampton Assembly Plant faces more turmoil

U.S. President Donald Trump doubled down on his trade rhetoric this week and took direct aim at the Canadian automobile sector including Brampton’s Stellantis (formerly Chrysler) assembly plant whose thousands of workers were already facing a latest round of uncertainty after a recent pause in plans to retool the giant facility.

In a chilling statement posted on Truth Social March 11 warning the Canadian government if it does not remove certain retaliatory tariffs, Trump threatened he will impose levies that would have a devastating impact on the country’s car manufacturing industry.

"If other egregious, long-time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!" Trump wrote.

Dodge Chargers were for years made in Brampton and shipped to the U.S.

(Flickr) 

The President once again undermined Canada’s sovereignty, urging the country to merge as the 51st U.S. state, claiming it would bring economic relief and greater security.

"The only thing that makes sense is for Canada to become our cherished Fifty-First State. This would make all Tariffs, and everything else, totally disappear," he posted. 

"Canadians’ taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before, there would no longer be a Northern Border problem, and the greatest and most powerful nation in the World will be bigger, better and stronger than ever — And Canada will be a big part of that. The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful Nation anywhere in the World."

He has made it clear that he wants to bring auto production back to the United States at Canada’s expense.

During his White House speech on March 7, he accused foreign automakers of “taking advantage” of the U.S. market, claiming, "I see they're driving a lot of cars into the U.S. to try and avoid the tariffs, and, you know, taking advantage of it a little bit."

In addition to acknowledging the potential financial impact of the tariffs, he mentioned providing a temporary relief to some automakers, including Ford and Stellantis.

"I solved a little bit of that because I have respect for our auto companies, and I gave them a little bit of a one-month reprieve because it was unfair, although I'm sure they'll take advantage of it," he stated.

With Trump's chaotic trade moves, the shadow trade war has brought volatility to an industry reliant on cross-border cooperation. Industry leaders including the Canadian Vehicle Manufacturers’ Association (CVMA) condemned the tariff threats and warned of their devastating impact on the industry.

“U.S. tariffs implemented today will do significant damage to the highly integrated North American automotive industry," said Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers’ Association, in a press release on March 4. "This will undo over 60 years of integration that has fostered a globally competitive automotive industrial base. Given the importance of the automotive industry to the U.S., Canada, and Mexico, the tariffs will have negative economic consequences. We are calling for an immediate lifting of the tariffs.”

The nearly four-decade-old assembly plant in Brampton underwent a $1.3 billion renovation to enable production toward the next generation Jeep Compass, a compact crossover SUV, including hybrid and fully electric models; and production of the North American Compass model was scheduled to start later this year.

(The Pointer files)

The modernization came as a huge relief to the almost 3,000 workers at the plant who had endured years of uncertainty after Stellantis had made clear three years ago that the longtime production of Chrysler and Dodge vehicles made in Brampton would be coming to an end (Stellantis North America replaced Fiat-Chrysler in 2021 after the giant Dutch-owned manufacturer had previously merged a number of car makers). 

Amid the uncertainty about internal combustion (petrol-driven) models that had been made in Brampton but were no longer selling as well, the assembly plant eventually eased tensions among union workers when Stellantis announced a shutdown of operations to reassess its product strategy and market conditions would be followed by a retooling to make vehicles of the future.

But with no clear timeline for resuming production, the move left the careers of thousands of Brampton workers in limbo, as they waited for a more definitive commitment from Stellantis to safeguard their future.

Then, six weeks ago, Stellantis sold-off 32-acres of the giant property at 2000 Williams Parkway, to Dream Industrial Limited for $80 million. While Stellantis described the sale as a part of an effort to streamline operations and optimize its real-estate portfolio, the timing coincided with a pause in what was supposed to be a retooling process to modernize the plant to make energy efficient vehicles, raising concerns about the automaker’s long-term presence in Brampton.

With Stellantis already prioritizing Jeep compass production in Italy, the land sale sparked growing speculation that Brampton’s role in the company’s North American manufacturing strategy was being squeezed.

Unifor, which represents more than 8,000 autoworkers at all Stellantis facilities in Canada, including the Windsor and Brampton Assembly Plants, is concerned that the sudden work pause in Brampton could have a bad outcome in an increasingly tense sector. In a press release on February 20, Unifor National President Lana Payne called the decision to stop retooling plans in Brampton from moving forward a “matter of grave concern.”

“The company has reassured the union that vehicle production plans are still in place for Brampton, although the timing of this announcement raises very serious concerns for Unifor members both in the plant doing the retooling work and those on layoff (since the previously manufactured Chrysler and Dodge models stopped production),” Payne stated. 

“The chaos and uncertainty plaguing the North American auto industry, which is under the constant threat of tariffs and a dismantling of EV regulations from the United States, are having real-time impacts on workers and corporate decisions. We have been saying this as a union from day one that the threats are also dangerous to our economy and to Canadian jobs.”

Despite the pause, Stellantis remains contractually obligated to the Jeep Compass production program under its 2023 collective agreement between Unifor and Stellantis, backed by the Canadian and Ontario governments. Once complete, Brampton Assembly is expected to return to a full capacity, three-shift operation.

“Our members in the auto sector understand the ups and downs of the industry, so a timing delay isn’t out of the ordinary,” Payne said. “However, this is not an ordinary time and because of the threats and chaos, we know our members are feeling additional worry right now. And rightfully so. I want to remind everyone that Stellantis is contractually committed to this vehicle program, and we expect the company to live up to its commitments to our members and to the governments of Canada and Ontario.”

Under the terms and conditions of the 2023 contract, both parties (Stellantis and Unifor) agreed that laid-off plant workers were granted enhanced income supports during the transition period. However, with an indefinite delay now looming amid Trump’s tariff confusion, the financial support commitment is hanging in the balance.

“We believe vehicle production will continue in Brampton, moving forward, but we think it’s overly optimistic to think our production start date in the fourth quarter of 2025 stays on track,” said Vito Beato, President of Brampton’s Local 1285. “We need to be clear about these timelines, and we need to make sure that our members are protected in the event of any change that may affect their income security.”

The union expects Stellantis to honour its contractual commitments and provide a concrete timeline for resuming production, as any prolonged delay could jeopardize not only those workers at the assembly plant but also thousands of others in the expansive automotive supply chain.

François-Philippe Champagne, former minister of Innovation, Science and Industry of Canada, recently stated in a post on ‘X’ that Stellantis had committed to an upgrade of the Brampton plant.

"In 2023, Stellantis committed to modernizing and optimizing its Brampton Plant—that was a key part of our deal," he posted. "We expect Stellantis to deliver for our workers, our industry, and our communities."

Champagne also shared a 2023 letter from Stellantis, in which the automaker described the Brampton retooling as a “lynchpin” of its commitment to maintaining its footprints in Canada.

A 2023 letter recently shared by former industry minister François-Philippe Champagne outlining Stellantis’ 2023 commitment to modernizing and optimizing the Brampton Assembly Plant, calling it a “lynchpin” of its footprint in Canada at the time.

(X)

According to media reports, Stellantis has since been making strategic shifts in response to a turbulent 2024, which saw former CEO, Carlos Tavares, depart unexpectedly amid declining sales and backlash over the company’s pricing strategy. Under Tavares, Stellantis prioritized higher profit margins over affordability, which led to significant market-share losses in both North America and Europe; as inflation hit, consumers turned to more competitively priced alternatives.

Following his exit, Stellantis' new leadership had begun restructuring its product lineup, including accelerating the rollout of hybrid and electric models to compete in the rapidly changing global market.

Now, Trump’s recent move to hurt EV and hybrid production in favour of traditionally made vehicles and his threats to ruin the Canadian industry have thrown another wrench into an already tense situation facing thousands of employees across Brampton.

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