Stellantis’ $2.8 billion investment secures future for Brampton, Windsor plants

The maker of Chrysler, Dodge, Jeep and Ram vehicles on Monday said it will invest $2.8 billion (3.6 billion Canadian dollars) into its Canadian operations for its electric transition, preserving the futures of both Windsor and Brampton assembly plants and creating its first battery lab in North America.

The amount is more than double the commitment Fiat Chrysler Automobiles NV made in 2020 contract talks with Canadian autoworkers union Unifor prior to merging with French automaker Groupe PSA to create Stellantis NV last year. The transatlantic automaker has pledged to become a sustainable mobility tech company, offering an all-electric version of all of its U.S. models by 2029 and investing $35.5 billion into electrification and software by 2025.

A $2.8 billion commitment by Stellantis NV for its Canadian operations secures the future of Brampton Assembly Plant outside of Toronto.

“These investments re-affirm our long-term commitment to Canada,” Mark Stewart, Stellantis’ chief operating officer, said in a statement, “and represent an important step as we move toward zero-emission vehicles that deliver on our customers’ desire for innovative, clean, safe and affordable mobility.”

A new, flexible architecture that will support all-electric and hybrid vehicles will go to Brampton Assembly Plant outside of Toronto. Industry forecasters had predicted the plant employing more than 3,000 people on two shifts could be without product by 2024 if the company moves production of the aging Dodge muscle cars to Belvidere, Illinois, when they are electrified. In addition to the Challenger and Charger, Brampton builds the Chrysler 300 sedan. With the new plan, Brampton will be retooled starting in 2024 with production resuming in 2025.

“The hard working, dedicated people at the Brampton Assembly Plant take pride in building some of the highest quality, best-selling vehicles in their class,” Danny Price, Unifor Local 1285 president, said in a statement. “Now, we can also be proud of playing a critical role in Canada’s electric vehicle transition for years to come.”

Windsor Assembly Plant also will support production of battery-electric and hybrid models on a new architecture for multiple models, according to a news release. Retooling is planned to begin in 2023, though the automaker declined to provide a time for completion. The plant will be able to adjust production volumes as needed to meet changing demand over the next decade, the company said.

Stellantis said it will make product announcements for the sites in the future, but the plans will return both plants to three-shift operations. The company declined to provide a breakdown of the investment per facility and projections for how many jobs would be created at or supported by the assembly plants.

The news comes after the automaker on Thursday said it was extending the 1,800-person second-shift at Windsor Assembly Plant through the end of the year. The company had been set to cut the shift at the Chrysler Pacifica plant at the end of June. In the first quarter, Stellantis sold more than 26,000 Pacificas in the United States, down 23% year-over-year.