Stellantis is in early negotiations with Zhejiang Leapmotor to establish EV assembly at its idled Brampton, Ontario plant following Canada’s decision to lower tariffs on Chinese-made electric vehicles. Discussions are preliminary with no final agreement and hinge on meeting Canadian labor and parts content requirements.

Canadian officials and unions have insisted that any new joint venture must prioritize local employment, utilize domestic parts suppliers, and integrate secure software systems. Thousands of workers laid off after Stellantis shifted SUV production to the US have raised concerns that reliance on Chinese knockdown kits could undermine domestic job creation.

Potential US scrutiny over vehicles produced in Canada with Chinese components poses regulatory uncertainty, as US authorities have warned Canada against serving as a conduit for Chinese-made EVs. Stellantis must navigate evolving North American trade policies to ensure Canada-assembled vehicles qualify for preferential access to the US market.

The firm unveiled its 2027 Pacifica and Durango models, signaling renewed investment in larger US-built vehicles. Concurrently, regional tensions in the Middle East have spurred consumer interest in electric vehicles, potentially boosting Stellantis’ EV sales volumes in North America.