Stellantis in talks to build Chinese EVs at Canadian plant, Bloomberg News reports

Stellantis is discussing options for building electric vehicles in Canada with Chinese partner Zhejiang Leapmotor Technology, Bloomberg News reported on Wednesday, citing people familiar with the matter.

In 2023, Stellantis bought a 21 per cent stake in Leapmotor for US$1.6 billion. The two automakers also formed the joint venture, Leapmotor International, in which Stellantis holds a 51 per cent stake.

The talks for building EVs in Canada are in an early stage, Bloomberg News reported, adding that the discussions were focused on an idled Stellantis assembly plant in Brampton, Ont..

The nearly four-decade-old assembly plant was closed for retooling in 2024 and was set to reopen in 2025 to produce the Jeep Compass compact.

However, Stellantis paused retooling and moved production of the Compass to a facility in Illinois after U.S. President Donald Trump imposed tariffs on Canadian goods.

In response, Canada threatened legal action against the car maker, noting that the company had agreed to maintain its Canadian presence in exchange for substantial financial support.

In November, the two parties entered dispute settlement proceedings to bring back production to the plant.

It is not clear what conditions might be placed on any Leapmotor-Stellantis venture in Canada, the Bloomberg report said, adding that talks are still preliminary and no decisions have been made.

“Stellantis ... is actively evaluating future programs for Brampton,” the company said.

“We are in active discussions with government officials and key stakeholders to ensure that the conditions for success are in place to support continued investment in Canada,” it added.

Zhejiang Leapmotor Technology did not immediately respond to Reuters’ requests for comment.

(Reporting by Natalia Bueno Rebolledo in Mexico City and Aishwarya Jain in Bengaluru; Editing by Anil D’Silva)