The Conservative Party of Canada has urged the federal government to make public its contracts with Stellantis after the company’s decision to shift production of the Jeep Compass from Brampton, Ont., to a U.S. plant. The request was conveyed in a letter to Prime Minister Mark Carney by Pierre Poilievre, the opposition leader, raising concerns about the lack of transparency regarding the $10 billion promised to the company.
In 2023, Nextstar Energy, a collaboration between Stellantis and LG, struck a deal with the federal and Ontario governments for a $5 billion electric vehicle battery plant in Windsor, Ont. The agreement entailed performance incentives of up to $15 billion over a decade, with a majority funded by the federal government, based on per unit production up to a cap of $45 US per kilowatt hour (kWh).
A previous agreement between Stellantis and the governments allocated $3.6 billion for upgrades at Brampton and Windsor plants to support electric vehicle and battery production. Poilievre emphasized the importance of clarifying the protections for Canadian auto workers within the contracts.
The Conservative leader’s call for transparency comes alongside a planned formal request for an emergency debate on the state of Canada’s automotive sector. Industry Minister Melanie Joly warned Stellantis of legal action if it fails to fulfill its commitments to maintain a “full Canadian footprint, including Brampton.” Stellantis had temporarily halted retooling plans for the Brampton plant in response to tariffs imposed by former U.S. President Donald Trump.
Despite reassurances from Stellantis about future plans for the Brampton facility, details remain undisclosed until discussions with the federal government conclude. The government has been in talks with the company for months, anticipating the plant’s retooling. Stellantis is reportedly exploring options for a new vehicle at the Brampton site.
Efforts to ascertain the funding provided to Stellantis have been initiated, with inquiries made to the federal and Ontario governments. As of March 31, 2024, $268 million of the committed $500 million federal funding for the Nextstar project had been disbursed. The disclosure of specific funding amounts for battery companies is restricted to safeguard contractual obligations and competitive interests.
(Note: This rewritten article maintains the original information while optimizing it for readability and SEO purposes.)
