Canada's auto industry in reeling over the announcement by automaker Stellantis on Tuesday to invest US$13 billion and expand U.S. production by 50 per cent over the next four years.
Stellantis said it would move production of its Jeep Compass to Illinois, after previously pausing production at the Brampton, Ont., plant in February as a result of U.S. President Donald Trump’s tariffs.
Speaking to AM800's Kyle Horner, Unifor National President Lana Payne, said the move by Stellantis sends a concerning message to the broader auto sector.
"It's is been a concern for us since the start the start of this trade war that we would see these kinds of decisions being made by automakers in order to basically appease Donald Trump in the trade war, and to shift production to a place where they're not facing the same kind of tariffs," Payne said.
Payne said this was a direct assault on hundreds of thousands of jobs, including the 3,000 in Brampton, that are dependant on the auto sector.
"In some ways Brampton now has become the lightning rod to say, okay this is real, the trade war is real, this is what we're facing, and we have to stand up and push back for Windsor, Brampton, and for every auto community, and every auto facility in this country," she said.
Stellantis said Canada remained important to it them.
"As part of this announcement, we will move one model from Canada to the U.S," Stellantis said in a statement to CTV News Toronto. "We have been in Canada for over 100-years, and we are investing. We are adding a third shift to the Windsor Assembly Plant to support increased demand of all versions of the Chrysler Pacifica and the new SIXPACK-powered Dodge Charger Scat Pack and R/T models."
"Canada is very important to us," the statement continued. "We have plans for Brampton and will share them upon further discussions with the Canadian government."
Payne said Stellantis previously made commitments to Windsor.
"To be clear, that third shift in Windsor was also negotiated by our union, and that was part of the commitment that they made to us in 2023 bargaining, so this isn't something extra that Stellantis is doing for us right now, this is something that our union fought for at a negotiating table," said Payne.
Payne said it was time for government to play hard ball with corporations and the U.S.
"It's time to reexamine the approach that we have taken, and look at the leverage that we have as a country, and use some of that leverage to push back against the U.S. right now. Otherwise, our entire industrial economy in Canada is a risk," Payne said.
Last week, U.S. Commerce Secretary Howard Lutnick dismissed any prospect of a comprehensive auto deal with Canada, according to three sources in the room when he made the comments.
According to the sources, Lutnick said the U.S. could continue buying parts from Canada, "but that’s about it."
-With files from CTV News