A factory that hasn’t built a single car since late 2023 could soon become North America’s backdoor for Chinese electric vehicles. And the automaker behind the idea is one that already owes the Canadian government a serious explanation.
I’ve been following the slow-motion collapse of Stellantis’ Canadian manufacturing footprint for a while now, and this latest development is the most audacious move yet — bold enough to have both the federal government and Ontario’s premier calling it out by name.
Why Stellantis Sees Leapmotor As Its Get-Out-Of-Jail Card
Stellantis owns a 20% stake in Leapmotor, a Chinese EV brand that’s been operating for just 10 years. That’s not a casual investment — it’s a strategic partnership that already produced a joint venture called Leapmotor International, currently supplying vehicles to Europe through a factory in Poland and a second plant under development in Spain.
The play in Canada follows a similar logic. With the Brampton Assembly Plant sitting empty near Toronto, Stellantis is reportedly in discussions to use that facility to assemble Leapmotor EVs for the North American market. The model most likely involved is the Leapmotor C10, an extended-range electric SUV that uses a gas engine purely as a generator — not for direct drive. It’s a smart design for range-anxious buyers, and it costs significantly less than comparable Western EVs.
The CKD Loophole That’s Making Ottawa Furious
Here’s the catch that changes everything about how this plan actually works. The vehicles wouldn’t be manufactured in Canada in any meaningful sense — they’d arrive as complete knock-down kits, or CKDs, with major components already assembled in China. Local workers would handle final assembly only. Think of it like receiving a nearly-finished puzzle and snapping in the last 50 pieces.
Canada’s Federal Industry Minister Mélanie Joly was direct about her opposition, telling reporters, “we can’t bring cars in a kit to Canada.” Ontario Premier Doug Ford echoed that position. Their concern isn’t abstract — the Canadian government agreed to substantial subsidies to keep Stellantis manufacturing in Canada, and those subsidies were tied to the expectation of real industrial activity, not kit assembly. The government is already pursuing legal action against Stellantis over the Brampton situation, so this proposal lands in the middle of an active dispute.
Canada Just Cracked Open the Chinese EV Door — Here’s Why
The political backdrop here is genuinely complex. In 2024, Canada introduced 100% tariffs on Chinese EVs, mirroring US policy and signaling solidarity with Washington. But by 2026, the Canada-US relationship has deteriorated, and Prime Minister Carney has been pivoting toward China to offset economic pressure from the south. As part of that shift, Canada agreed to allow up to 49,000 Chinese EVs into the country annually on a tariff-free basis, with that quota expected to grow slowly over time.
Much of that quota is reserved for low-cost models — exactly the segment where Leapmotor competes. So the market opening and the Stellantis opportunity are arriving at the same moment. The real story is whether assembling CKD kits in Brampton would count against that quota, and whether it would satisfy the spirit of the government’s investment in Canadian auto manufacturing. Right now, the answer from Ottawa is clearly no.
| Detail | Fact |
|---|---|
| Plant location | Brampton, Ontario — idle since late 2023 |
| EV brand involved | Leapmotor (Stellantis owns 20% stake) |
| Assembly method | CKD kits — final assembly only, parts from China |
| Canadian EV tariff on China | 100% (introduced 2024) |
| New tariff-free quota | 49,000 Chinese EVs annually under Carney deal |
| Key vehicle | Leapmotor C10 — extended-range electric SUV |
| Government response | Federal minister and Ontario premier both opposed |
What Stellantis Isn’t Saying About Brampton’s Real Future
Brampton Assembly has a history worth respecting. The plant opened in 1986 as an AMC facility, evolved through decades of Chrysler LH sedans, and eventually became the home of the Dodge Charger, Challenger, and Chrysler 300 — some of the most iconic American muscle cars of the modern era. It supported thousands of jobs and an entire regional supply chain. Then Stellantis moved the planned Jeep Compass production to Belvidere, Illinois, and the lights went out in Brampton.
What Stellantis isn’t saying loudly is that CKD assembly would generate far fewer jobs and far less local economic activity than traditional manufacturing. Canada is no stranger to CKD builds — Volvo and Peugeot both used the method under pre-NAFTA trade agreements — but those were different times with different expectations. The Canadian government didn’t hand out subsidies to get a parts-assembly warehouse. If Stellantis pushes forward with this plan over government objections, the legal battle that’s already brewing will almost certainly escalate into something much more expensive for everyone involved.
I think this story deserves more attention than it’s getting. Whether you’re a Canadian worker, a policy watcher, or just someone who wants affordable EVs without the geopolitical baggage, the outcome of this standoff will shape how Chinese EV brands enter North America for years to come. Follow this one closely — and if you’re in Ontario, your local representatives are already hearing about it, and they should be hearing from you too.
