The former American Motors plant in Brampton, now owned by Stellantis, was supposed to be the manufacturing site for a new Jeep vehicle. The federal government under Justin Trudeau handed about $15 billion to Stellantis to build an EV battery complex in Windsor, Ontario. It was apparently just assumed that this meant that Stellantis would keep the Brampton facility open and operating, but that assumption was faulty:
Stellantis has announced they’re leaving Brampton. That’s it. End of story.
Three thousand workers. Gone. A manufacturing base gutted. A city thrown into economic chaos. And a federal government left holding a $15 billion bag it handed over like a drunk tourist at a rigged poker table.
The Jeep Compass — the very vehicle they promised would anchor Ontario’s role in the so-called “EV transition” — will no longer be built in Canada. Production is moving to Belvidere, Illinois. The same company that cashed billions of your tax dollars under the banner of “green jobs” and “economic transformation” has slammed the door and walked out. And no, this isn’t a surprise. This was baked into the cake from day one.
Let’s rewind.
In April 2023, under Justin Trudeau’s government, Chrystia Freeland — then Finance Minister — and François-Philippe Champagne, the Industry Minister, announced what they called a “historic” agreement: a multi-billion-dollar subsidy package to Stellantis and LG Energy Solution to build an EV battery plant in Windsor, Ontario.
It was sold as a turning point. The future. A Green Revolution. Thousands of jobs. A new industrial strategy for Canada. But in reality? It was a Hail Mary pass by a government that had already crippled Canada’s energy sector and needed a shiny new narrative heading into an election cycle.
And here’s what they didn’t tell you: the deal had no enforceable commitment to keep auto production in Brampton. There were performance-based incentives — yes — but only for the battery plant. Not for the Brampton assembly line. Not for the existing workforce. And certainly not for ensuring the long-term health of Canada’s domestic auto industry.
They tied this country’s future to a globalist fantasy. A fantasy that assumed the United States would remain under the control of climate-obsessed technocrats like Joe Biden. A fantasy that required a compliant America pushing carbon neutrality, electric vehicle mandates, and billions in matching subsidies for green infrastructure.
But in November 2024, Americans said no.
Donald Trump was elected president. And just as he promised, he tore Biden’s green agenda to shreds. He pulled out of the Paris Climate Accord — again. He dismantled the EV mandates. He unleashed American oil and gas. But he didn’t stop there. Trump imposed a sweeping America First manufacturing policy, pairing 25% tariffs on imported goods with aggressive incentives to bring factories, jobs, and supply chains back onto U.S. soil.
And, as Conservative deputy leader Melissa Lantsman points out, it’s just the beginning:
You probably heard the news by now: Stellantis is cancelling its opening of a Jeep factory planned in Brampton, taking over 3,000 jobs and USD $600 million of investment out of Canada and moving it to the U.S.
This is the latest development in the growing trend of companies scaling back their operations in our country and choosing instead to grow in the US. Whisky maker Diageo found its name in the headlines last month when they announced they’d move their Crown Royal bottling facility south. GM laid off or cut down shifts for 750 autoworkers in Oshawa and 900 in Ingersoll while sending $4 billion to the U.S. Those are the ones that drew the headlines.
Why is this happening? Well – the reason on everyone’s mind right now is tariffs. And it’s true – tariffs are having a big impact on the Canadian economy and on our trading relationships. But there are other, deeper reasons at play, too.
Companies don’t just make decisions on a whim – especially those related to long-run production and fixed investments totalling hundreds of millions or even billions of dollars. Those decisions are made as part of detailed, multi-year analyses that take into account predicted economic conditions, market forces, and many other factors. A massive move of your production facility isn’t a temporary, six-month decision to be trifled over – it’s a permanent thing and that means they aren’t coming back.
The objective is to decrease uncertainty, cut costs, increase production, etc. etc. all to work in favour of any company’s ultimate goal, which is, of course, to make money.
So let me translate what all these investment and job cuts really mean: they’re not a knee-jerk reaction to the tariffs, although those play a part. They’re a statement about the long-term trajectory of the Canadian economy and the kind of climate that a decade of Liberal government has built for businesses in this country.
If these companies thought the U.S. tariffs would be transitory, a six-month blip, an economic fad – then they’d have no reason to cancel factories that will be producing goods for 20 or 30 years. That wouldn’t make financial sense.
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If things get worse, the government might resort to its favourite strategy of just offering more hand-outs for businesses to try and entice them to stay here, but that only works for so long. That Stellantis plant in Brampton? The one that’s moving to the U.S.? The Ontario government promised them over $500 million just a few years ago – and the feds followed.
Turns out, you can promise to cut somebody a giant cheque and it’s still unprofitable for them to do business here.
As I mentioned, the continued trade uncertainty doesn’t help our situation, and the Prime Minister’s failure to get a deal is costing us big-time – especially as he promises to drive a trillion dollars of investment southbound at the expense of our workers here.
But as long as the Liberals keep the same old approach towards economics and business in this country, as long as the Liberals keep the taxes high, the productivity low, and the red tape piled up high — expect to see more headlines like the one about Stellantis, not fewer.
How many more job losses will it take for our leaders to realize that?
