Stellantis, Chinese EV Maker Eye Canada Plant for Joint Production

Key Details Stellantis NV is in early-stage talks with Chinese partner Zhejiang Leapmotor Technology to potentially build electric vehicles at an idled assembly plant in Brampton, Ontario. This would mark the first major Chinese auto investment in Canada since the government agreed to reduce tariffs on Chinese-made EVs in January. Why It Matters The move underscores how Trump's tariffs are reshaping North American auto manufacturing. Stellantis previously canceled plans to produce a Jeep SUV at the Brampton facility and moved production to the U.S., prompting Canada to threaten clawing back subsidies. Now the company is exploring alternatives with its Chinese partner. Tariff Pressures U.S. officials have warned Canada against becoming a backdoor for Chinese vehicle exports, with Trump threatening 100% tariffs on Canadian goods if such deals proceed. The discussions come as Stellantis negotiates with Canadian Industry Minister Melanie Joly over the plant's future. Background Stellantis owns a 20% stake in Leapmotor and formed a joint venture called Leapmotor International in 2024 focused on global EV production and sales. The joint venture is already planning production at a Stellantis factory in Spain this year.