Union stalls proposal to build EV kit cars at Brampton plant: report

A proposal to build Chinese EV kit cars in Brampton would have put just a few hundred Stellantis workers back on the job and leave thousands of others without work, according to a new report.

Bloomberg News reported late last month that American automaker Stellantis and Zhejiang Leapmotor Technology were in talks to build ​electric vehicles at the Stellantis plant in Brampton.

That facility employed around 3,000 workers in Brampton before it was shut down for retooling in 2024 ahead of production of the new Jeep Compass.

But the company announced in October it was moving manufacturing to the U.S. despite years of assurances that the new Compass would be built in Canada. More than 200 former workers at Brampton plant are now punching in at the American automaker’s Windsor facility, while other employees waiting to work are receiving less than three-quarters of their regular pay.

And while Stellantis hasn’t confirmed or denied the talks with Zhejiang, Automotive News Canada reported last week that the union representing workers at the Brampton plant rejected the Leapmotor proposal.

READ MORE: Union ‘won’t let our guard down’ amid positive discussions about reopening Stellantis plant in Brampton

Between 200 to 300 of Unifor Local 1285’s approximately 3,000 Brampton members would have been put back to work under the Leapmotor proposal, according to reports.

A request for comment from the union was not returned by publication.

Insiders suggested the deal would have been for “complete knockdown kits,” with all the parts shipped from China before being assembled in Brampton.

Both the Ontario and federal governments have also reportedly rejected the Leapmotor proposal, with federal Industry Minister Mélanie Joly saying such plans didn’t meet its expectations for restoring production to Brampton.

Canada has launched a dispute resolution process against Stellantis after the feds, along with the province, pledged billions in subsidies for the automaker under various contracts. This includes a joint commitment of $15 billion to help Stellantis partner with NextStar/LG for a new electric vehicle (EV) battery plant in Windsor.

Ontario and the federal government also provided millions to help Stellantis retool its Windsor and Brampton plants to ramp up EV production.

The Stellantis plant property was gifted from the city to Chrysler back in the ‘80s before transitioning to Fiat Chrysler Automobiles and eventually Stellantis. But a recent motion passed by Brampton City Council means the property can only be used for auto sector jobs – a move that could “make sure those jobs come back to our city,” Mayor Patrick Brown has said.