Windsor, Ontario — Disputes surrounding Stellantis’ plans to build a battery plant in Windsor have taken a notably more dire turn, as sources close to the automaker have informed the Windsor Star that the company may be calling its entire Canadian footprint into question.
In the hot potato game that the funding of this new EV battery plant appears to be, insider sources say they are concerned that this ordeal could sour Stellantis’ feelings on its other Canadian operations; most notably, the Brampton, Ont., assembly plant.
“They’re not bluffing. They’re prepared to pull the plug on the battery plant,” the source said under anonymity.
“They’re looking at their Canadian operations. Brampton is on the chopping block. The real estate is a real value at that plant.
“If they (governments) think there’ll be limited damage, they’re in for a shock. They’ve already damaged the relationship for the future.”
LouAnn Gosselin, head of communications for Stellantis Canada, did not respond directly to the suggestion that the company may withdraw, but said “Stellantis and LG Energy Solution simply ask that the Canadian government keep its commitments in relation to what was agreed last February and which led us to continue construction work of the gigafactory in Windsor.
“This uncertainty is unfair to our Canadian employees, as well as towards Stellantis and LGES investments,” she said.
While Stellantis’ long-standing Windsor Assembly Plant is considered unlikely to be affected by this situation, the company had announced in the past that the Brampton plant would be the site of EV production.
“The Windsor plant isn’t on the chopping block because the company feels the city has been so supportive of this project,” the source said. “They’ve done everything they’ve been asked.”
Stellantis has yet to make clear what EV projects the Brampton plant would be taking on, despite seeing several of its production lines closed over recent years.
In a joint letter sent April 19 to Prime Minister Justin Trudeau, Stellantis and LG Energy Solutions CEOs, Carlos Tavares and Young Soo Kwon urged the federal government to make good on commitments to offer a competitive deal to that presented by the U.S. government.
“Continued delay in executing this agreement is bringing significant risk to the project,” read an excerpt of the letter.
“In the event our agreement is not promptly executed, we will be forced to make difficult decisions regarding this project and other respective investments in Canada in order to deliver on our commitments to bring new technology to the North American market.”
Most recently, the federal government, and more specifically Deputy Prime Minister Chrystia Freeland, called on Ontario to contribute its “fair share” to the deal.
“When it comes to Stellantis, we are very supportive of this investment,” she said.
“But I also want to point out that the resources of the federal government are not infinite. We are counting on Ontario to do its fair share and we’re counting on Stellantis to be reasonable.”
