Big three automaker Stellantis is discussing options to potentially build electric vehicles (EVs) in Canada with Chinese partner Zhejiang Leapmotor Technology, potentially at an idle plant in Ontario.<\/p>\n
The Canadian discussions are focused on the idled Stellantis plant in Brampton, where thousands of workers were laid off when the automaker shifted production of the Jeep Compass to the Belvidere Assembly Plant in Illinois.\u00a0<\/a><\/p>\n This decision \u201cprompted fury from Carney\u2019s government,\u201d according to\u00a0Bloomberg,\u00a0which threatened to withdraw\u00a0millions of dollars in taxpayer-backed subsidies from Stellantis.<\/p>\n However, discussions with Industry Minister Melanie Joly now include the possibility of manufacturing cars with Leapmotor. Stellantis purchased a 20 per cent stake in Leapmotor in 2023, and later formed a joint venture called Leapmotor International.<\/p>\n Globally, the joint venture plans to begin building Leapmotor electric SUVs later this year at a Stellantis facility in Spain, with EV production also planned in Brazil and Malaysia. Those projects will mainly rely on \u201cknockdown kits,\u201d in which the cars are largely built in one country and shipped overseas for final assembly.<\/p>\n However, this strategy may not be what Stellantis does if it brings Leapmotor to Canada. According to Bloomberg,\u00a0there will be delicate negotiations with both labour unions and parts suppliers that are wary of Leapmotor and other Chinese firms entering the Canadian auto sector.<\/p>\n \u201cChinese knockdown kits may be fine for Brazil, but they aren\u2019t for the hundreds of Canadian auto parts suppliers who are waiting for the plant to reopen,\u201d says Flavio Volpe, president, Automotive Parts Manufacturers\u2019 Association, through text with\u00a0Bloomberg.\u00a0\u201cWe don\u2019t need a bad deal, and we shouldn\u2019t settle for one.\u201d<\/p>\n The talks are currently in an early stage, and if the companies proceed, it would be the first major Chinese auto investment in Canada since the initial agreement to bring Chinese EVs to Canada was reached in January.<\/a><\/p>\n Source: Bloomberg<\/a><\/p>\n Image Credit: Shutterstock<\/p>\n