Stellantis has revealed that it would be shifting Jeep Compass production from its Brampton, Ontario, plant to Illinois and has stated that the main reason for this is tariff issues. This decision has created a lot of controversy among Canadian officials and union representatives who see this as a direct retaliatory act towards the Trump administration’s trade policies. The production move impacts about 3,000 workers in the Brampton Assembly plant.
Stellantis shifts Compass production due to tariff pressure
Stellantis will transfer next-generation production of Jeep Compass from its Brampton, Ontario, plant to its former factory in Belvidere, Illinois, which shut down in 2023. The IL plant will produce the next generation model in 2026, the Jeep Cherokee, and the new model, the Compass 2027, whereas the retooling of Brampton was frozen in February 2025. Trade Code does not address the movement, but Canadian union leaders and politicians have pointed directly to Trump tariffs on foreign-made cars as the reason.
Industry Minister Melanie Joly said the decision was “unacceptable” and called for Stellantis to suggest new mandates that would save Brampton jobs and honour contracts with Canadian suppliers. In a letter to Stellantis CEO Antonio Filosa, which she sent via social media, Joly insisted that Stellantis has a legal commitment to its Canadian activities as a result of historic government support programs, including the Strategic Innovation Fund. Canada has warned that it will sue Stellantis if the company does not continue to expand the transition program in Brampton through at least 2027.
What move concealed a huge US investment strategy
This change in production is part of Stellantis’ gargantuan investment of $13 billion in U.S.-based manufacturing over the next four years, which is the most the company has ever invested in a single region. The funds are earmarked specifically to reduce tariff costs and will drive up the number of vehicles being made in the United States by 50% per year, a well-rounded policy to stay out of the cross-border trade penalties altogether.
This transformation of tariff policies and the massive investment they represent show that automotive production in North America is fundamentally changing the way that companies in the region do business and are now becoming much more focused on U.S. production over having cross-border supply chains. The size of this investment demonstrates Stellantis’ perspective that tariff avoidance is a long-term strategic goal and not a tactical response to current trade policies.
Unifor National President Lana Payne said that “Canadian auto jobs are being sacrificed on the Trump altar,” while the union of Brampton Assembly workers said: “Stellantis cannot be allowed to renege on its commitments to Canadian workers.”
Despite the change, Stellantis pledges to its ongoing Canadian operations
Despite the Compass production relocation, Stellantis has suggested that it would have “plans for Brampton and will share them after further discussion with the Canadian government.” The company cited investments in its Windsor Assembly complex that have created a third shift to increase production of the Chrysler Pacifica minivan and gasoline-powered models of the new Dodge Charger. Ontario Premier Doug Ford says he is disappointed with Stellantis’ choice to invest in the US before pressing ahead with operations in Canada.
“We have plans for Brampton and will share them upon further discussions with the Canadian government.” – Stellantis spokesperson
| Production Timeline | Location Changes |
|---|---|
| 2025: Brampton retooling paused | Ontario to Illinois shift |
| 2027: Compass production begins | Belvidere facility reopens |
| 2029: Next-gen Durango launches | Detroit Jefferson North |
The final direction of negotiations will dictate whether Stellantis upholds the commitments to its Canadian employees and suppliers. Given the company’s speed to invest in U.S. operations to avoid incurring tariff charges, the future stakeholders of cross-border automotive manufacturing are at risk of moving into an entirely difficult position to develop, potentially altering decades of embedded cross-border North American manufacturing approaches.