Stellantis pauses work on Jeep Compass, leaving future of Brampton plant up in the air

Cars pass along the assembly line at the Stellantis plant in Brampton, Ont. on Friday July 21, 2023. THE CANADIAN PRESS/Chris Young

Stellantis says that it is “temporarily pausing” work on the next generation of the Jeep Compass, leaving the future of its Brampton Assembly Plant up in the air.

The new electric SUV was scheduled to go into production at the Brampton plant later this year.

But in a statement on Thursday, Stellantis confirmed that it was pausing work on the vehicle as it continues to “reassess its product strategy in North America.”

“As we navigate today’s dynamic environment, Stellantis continues to reassess its product strategy in North America to ensure it is offering customers a range of vehicles with flexible powertrain options to best meet their needs,” spokesperson LouAnn Gosselin said. “As a result, the company is temporarily pausing work on the next generation Jeep Compass, including activities at the Brampton Assembly Plant. This does not change our previously announced investment plans for Brampton.”

The Ontario government announced in 2022 that it would invest $132 million in helping Stellantis retool and modernize the Brampton plant for electric vehicle production, with a matching investment coming from the federal government.

Progressive Conservative Leader Doug Ford responded to the news on social media, implying that it was a result of U.S. President Donald Trump’s tariff threats.

Ford, who is in the middle of a campaign, reiterated that he needed a “stable, four-year” mandate during Trump’s term and then said, “I’ll always have the backs of our autoworkers.”

In a statement, Unifor said that Stellantis has reassured its members that “vehicle production plans are still in place for Brampton.”

However, it said that the timing of the announcement against the backdrop of continued tariff threats from U.S. President Donald Trump “raises very serious concerns for Unifor members both in the plant doing the retooling work and those on layoff.”

“The chaos and uncertainty plaguing the North American auto industry, which is under the constant threat of tariffs and a dismantling of EV regulations from the United States, are having real-time impacts on workers and corporate decisions,” the statement notes. “We have been saying this as a union from day one that the threats are also dangerous to our economy and to Canadian jobs.”

The Brampton Assembly Plant previously employed 3,000 workers and had been expected to return to a “full capacity, three-shift operation” in the fourth quarter of 2025, Unifor said.

The union now says that it is likely “overly optimistic to think our production start-date in the fourth quarter of 2025 stays on track.” It is warning that any delay will have “spill-over effects on local parts supplier firms tied to vehicle production, including thousands of union and non-union workers.”

Brampton Mayor Patrick Brown said in a statement that he fully understands Stellantis' decision and remains grateful for the auto manufacturer’s ongoing commitment to invest in the city.

“We are committed to working with our federal and provincial partners in supporting the ongoing success of Brampton’s automotive sector,” Brown said.

Innovation, Science, and Industry Minister François-Philippe Champagne said in a post on social media that he stands with workers impacted by the pause and that the federal government is in contact with Stellantis and Unifor.

“We will make sure that Stellantis honor its commitments and follow through on its plans for Brampton.”