Chinese EVs in Canada? Stellantis Plans Spark Political Firestorm
A factory that once employed thousands of Canadian autoworkers could soon be used to assemble Chinese electric vehicles — and that prospect has triggered a swift and unified backlash from politicians, unions, and trade experts alike. Stellantis has proposed assembling electric cars made by its partly-owned Chinese partner Leapmotor at its idled plant in Brampton, Ontario, near Toronto. The union Unifor confirmed the talks, first reported by Bloomberg, noting the potential move could mean most of the actual manufacturing remains in China, with only minor assembly work done in Canada.
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An Idled Plant, a Chinese Partner, and a Nation's Auto Jobs at Stake
A factory that once employed thousands of Canadian autoworkers could soon be used to assemble Chinese electric vehicles — and that prospect has triggered a swift and unified backlash from politicians, unions, and trade experts alike.
Stellantis has proposed assembling electric cars made by its partly-owned Chinese partner Leapmotor at its idled plant in Brampton, Ontario, near Toronto. The union Unifor confirmed the talks, first reported by Bloomberg, noting the potential move could mean most of the actual manufacturing remains in China, with only minor assembly work done in Canada.
Stellantis has not officially confirmed the reports. A company spokesperson said Stellantis "remains focused on a strong Canadian footprint and is actively evaluating future programs for Brampton," adding that any investment decision must be "sustainable and a long-term commitment that supports workers and suppliers."
What Is a "Knock-Down Kit" — and Why Does It Matter?
The plan reportedly involves what the auto industry calls CKD assembly — "completely knocked down" kits. This means vehicles are largely manufactured in China, then shipped abroad in parts for final assembly.
One automotive expert described the process bluntly: "It's not the same as building a car here. It basically means that the car is actually built somewhere else, and then it comes to the plant in a crate or container and a few finishing touches are put on it in that plant."
A traditional auto assembly plant like Brampton at full production supports thousands of direct jobs plus tens of thousands more in the surrounding parts supply chain. A CKD assembly operation, by contrast, is closer to a warehouse with screwdrivers — most of the value-added manufacturing and the jobs that come with it stay in China.
Ontario's Premier Calls It "Unacceptable"
Ontario Premier Doug Ford said it is "unacceptable" that Stellantis is in talks to build Chinese EVs in Brampton. Speaking to reporters in Dallas, Texas — where he was meeting with U.S. business leaders and politicians to push back against tariffs on Canadian goods — Ford said the deal would undermine Ontario autoworkers. "We can't have cheap Chinese parts and kits coming over to be assembled," he said. "We're dead against this."
Canada's federal Industry Minister Mélanie Joly was equally direct. Speaking in Vancouver, Joly told reporters: "We can't bring cars in a kit to Canada. It needs to support the local supply chain." She added that the government would not release previously committed subsidy money unless Stellantis brings back genuine manufacturing with proper labour conditions.
Unifor: "This Is Not Manufacturing"
Unifor national president Lana Payne said the union has "very grave concerns about this proposal because it is not manufacturing."
Vito Beato, the local Unifor leader representing Brampton workers, said China's kit-assembly model provides only a fraction of the jobs that a traditional assembly plant creates. The union represents approximately 3,000 workers who were laid off when Stellantis shifted production plans away from Brampton.
The auto parts industry echoed these concerns. Flavio Volpe, head of the Automotive Parts Manufacturers' Association, said: "Chinese knockdown kits may be fine for Brazil, but they aren't for the hundreds of Canadian auto parts suppliers who are waiting for the plant to reopen. We don't need a bad deal, and we shouldn't settle for one."
How Did We Get Here? The Brampton Plant's Rocky History
The Brampton assembly plant has sat idle for over two years. Stellantis originally committed to retooling the facility for electric Jeep Compass production as part of a $3.6 billion investment in Ontario backed by more than $529 million in federal subsidies. The deal required Stellantis to maintain an average of 4,475 full-time employees in Canada and keep production running through December 2035.
That commitment collapsed in October 2025, when Stellantis announced it was moving Jeep Compass production to Illinois — leaving about 3,000 workers furloughed. The Canadian government subsequently launched a formal dispute process to recover subsidy funding.
The China Connection: Leapmotor and Stellantis
According to Reuters, Stellantis bought a 21 percent stake in Leapmotor for $1.6 billion in 2023. The two companies also created Leapmotor International, a joint venture in which Stellantis holds a 51 percent stake.
Leapmotor has delivered over 100,000 vehicles per quarter for four consecutive quarters and builds aggressively affordable EVs — including models starting at around $9,500. Stellantis and Leapmotor jointly opened a plant in Poland in 2024 to make the T03 electric car, but closed it within a year. The partnership is also expected to produce EVs in Spain, Brazil, and Malaysia.
Carney's Beijing Deal Opens the Door
The Brampton situation did not emerge in a vacuum. In January 2026, Prime Minister Mark Carney announced a trade agreement with China that slashed Canada's tariff on Chinese EVs from 100 percent to 6.1 percent, with an initial annual quota of 49,000 vehicles. In exchange, China agreed to reduce its tariffs on Canadian canola — a key agricultural export.
The quota is expected to rise to 70,000 vehicles by 2031, and half of the imports must be priced at around CA$35,000 or less. Chinese automakers are also expected to establish joint ventures in Canada within three years.
The timing of the Stellantis-Leapmotor proposal is no accident — the Carney-Beijing deal cracked open the door for Chinese automakers to enter the Canadian market, and Stellantis appears to be the first to try walking through it.
A Geopolitical Minefield
The deal puts Canada in a difficult position on multiple fronts. Critics argue the Canada-China EV agreement undermines the premise that North America can function as a unified trade bloc ahead of the scheduled USMCA review this summer.
After Carney agreed to the Chinese EV arrangement, Trump threatened 100 percent retaliatory tariffs on Canadian goods. U.S. Transportation Secretary Sean Duffy warned that Canada would "regret" bringing Chinese EVs into its market.
Any Leapmotor vehicles assembled in Brampton would almost certainly face prohibitive tariffs if exported to the United States, limiting the market to Canada's comparatively smaller domestic demand.
What Comes Next?
The talks between Stellantis and Leapmotor remain preliminary. But with thousands of workers in limbo, hundreds of millions in taxpayer subsidies on the line, and a geopolitically charged trade environment, the pressure on all sides to reach a resolution is mounting.
Canada's government insists that any deal for the Brampton plant must include genuine manufacturing, local supply chain participation, and secure software — not just a screwdriver operation on Chinese-made kits. Whether Stellantis will meet those conditions, or walk away entirely, remains the central question.
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Sources
- The Globe and Mail – Stellantis proposed building Chinese electric vehicles at idled Brampton plant: https://www.theglobeandmail.com/business/article-stellantis-brampton-electric-vehicles-facility-auto/
- CBC News – Ontario 'dead against' Stellantis talks to build Chinese EVs at Brampton plant: https://www.cbc.ca/news/canada/toronto/stellantis-plant-brampton-ontario-ev-ford-9.7151265
- Electrek – Stellantis wants to build Chinese Leapmotor EVs at its idled Canadian plant: https://electrek.co/2026/04/02/stellantis-leapmotor-chinese-evs-brampton-canada-plant/
- The Globe and Mail – Industry Minister rejects Stellantis plan for Chinese EVs at Brampton: https://www.theglobeandmail.com/business/article-stellantis-chinese-evs-leapmotor-melanie-joly-brampton/
- BNN Bloomberg – Potential for Chinese EV production at Stellantis plant raises concerns: https://www.bnnbloomberg.ca/business/2026/04/02/potential-for-chinese-ev-production-at-stellantis-plant-in-brampton-raises-concerns/
- Detroit News – Canada welcomes Chinese vehicles as U.S. automakers pull investments: https://www.detroitnews.com/story/business/autos/2026/01/27/canada-china-electric-vehicle-trade-tariffs-usmca/88315840007/
- Council on Foreign Relations – Mexico, Canada's Chinese EV Imports Test U.S. Auto Industry: https://www.cfr.org/articles/what-canadian-and-mexican-ev-imports-from-china-mean-for-the-united-states
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