Stellantis is in early talks with Chinese electric vehicle maker Leapmotor about using its idled plant in Brampton, Ontario, for EV production, according to a report. The discussions are preliminary, and no final decision has been reached.
The Brampton factory was originally slated to build a new Jeep SUV. Stellantis later scrapped that plan and shifted the program to a plant in the United States. Since then, the company has been working with Canadian officials to figure out what to do with the site.
Leapmotor isn’t a new name for Stellantis. The automaker bought a 20% stake in the Chinese EV company in 2023. The two firms then formed a joint venture called Leapmotor International, which handles overseas production and sales.
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Canada’s industry ministry has made its position clear. Any new auto investment in the country, the ministry said, should prioritize local labor and parts suppliers. Stellantis responded by saying all options for the Brampton plant remain on the table. That is a deliberately open-ended statement, and it leaves room for a deal — or for none at all.
Why Brampton matters to Stellantis
The Brampton plant has been a question mark for the automaker ever since the Jeep SUV cancellation. Keeping the facility running is politically important in Ontario, where auto manufacturing employs tens of thousands of people. Its idling has already drawn attention from union leaders and local politicians.
For Stellantis, partnering with Leapmotor on the site would offer a way to repurpose the factory without bearing the full cost of a new EV platform alone. Leapmotor, which focuses on smaller, more affordable EVs, could bring a cheaper production model to the table. The Chinese company sold roughly 140,000 vehicles in 2023, mostly in its home market.
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The Leapmotor connection
This isn’t the first time Stellantis has leaned on a Chinese partner for EV technology. The company also uses batteries from CATL and has explored joint development with other Chinese suppliers. Leapmotor’s strength lies in its vertically integrated supply chain, which keeps costs down — something Stellantis needs as it tries to compete with cheaper Chinese EVs entering global markets.
The two companies already have a working relationship through Leapmotor International. That venture is supposed to start selling Leapmotor EVs in Europe this year, using Stellantis’s dealership network. Adding a Canadian factory to that arrangement would be a natural — if complicated — next step.
What Canadian officials want
Stellantis has not said whether Leapmotor would build its own vehicles in Brampton or whether the plant would be retooled for a jointly developed model. The company also hasn’t disclosed how many jobs the project might create. Union representatives at the site have said they’re watching the talks closely but have no details yet.
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The Brampton plant itself is a large facility, covering about 4 million square feet. It was originally built in the 1980s and has produced everything from Dodge Chargers to Chrysler 300s. Retooling it for EV production would require significant investment, but the site has rail access and sits near major highways, which helps logistics.
For now, the discussions remain exactly that — discussions. Stellantis has other options, including selling the site or converting it for parts production. But the Leapmotor talks suggest the company sees a future for the facility in EVs, even if the path there isn’t clear yet. The next few months will likely reveal whether the two sides can agree on terms that satisfy both the company’s bottom line and Canada’s labor demands.