Stellantis Eyes Ontario EV Production Under 49,000-Unit Chinese Quota
STLA•Canadian Industry Minister Melanie Joly said government discussions with Stellantis NV aim to produce Chinese-made EVs in its idle Brampton, Ontario plant through a joint venture with Zhejiang Leapmotor. The deal leverages a trade agreement permitting 49,000 Chinese EV imports at a 6% tariff under Canadian-control and supply-chain conditions.
1. Government Talks with Stellantis
Canadian Industry Minister Melanie Joly said discussions have taken place with Stellantis NV about converting its idle Brampton, Ontario plant to produce Chinese-designed EVs through a joint venture with Zhejiang Leapmotor Technology Co.
2. Import Quota Framework
Under a trade deal signed in January, Canada permits up to 49,000 Chinese-made EVs to enter at a 6% tariff, replacing the previous 106% rate, aimed at attracting foreign investment and boosting domestic auto manufacturing.
3. Joint Venture Requirements
The government stipulates that any joint venture must have Canadian control and establish a localized supply chain, rejecting simply assembling imported kits, to ensure economic benefits and safeguard sensitive sectors under the Investment Canada Act.
