Stellantis and Trudeau commit $2.8 billion to increase electric vehicle production in Canada

Stellantis has announced a $3.6 billion ($2.8 billion) investment in two of its Canadian sites to boost electric vehicle production. Stellantis’ $35.5 billion pledge to electric vehicles (EVs) and new software over the next year is part of its aim to eliminate internal combustion engines (ICEs) and become carbon-neutral by 2038.

Chief Operating Officer (COO) of Stellantis North America, Mark Stewart, and Canadian Prime Minister Justin Trudeau announced the renovation of the Windsor and Brampton, Ontario facilities during an occasion at the firm’s Automotive Research and Development Center in Windsor.

The Canadian and Ontario governments will make contributions of up to $410.7 million (CAD $529 million) and $398 million (CAD $513 million), respectively, to the new funds, demonstrating that Canada is eager to enhance domestic EV production at a time when rising climate change policies combine with increasingly important supply chain restrictions.

“Today’s agreement on made-in-Canada EVs is another investment in our people and our future,” Prime Minister Trudeau remarked at the ceremony. “We’re establishing a world-class auto industry in Canada, as well as an inventive economy and a clean, prosperous future for all. That’s what a thriving economy and environment look like.”

According to Stellantis, the money will result in the creation of more than 650 engineering employment opportunities at the Windsor R&D facility. The business also stated that an extra 2,500 jobs will be generated at the joint battery venture of Stellantis-LG Energy Solution, which was launched in October of last year. Stellantis only stated that its new facility would be constructed in North America at the time, but it’s now evident that the manufacturer has its goals set on Ontario.

Stellantis, which owns Dodge, Jeep, Ram, Alfa Romeo, Fiat, Chrysler, and Peugeot, hasn’t indicated which brands will be affected; however, the Chrysler EVs and Chrysler Pacifica Hybrid, as well as a few electrified Dodge cars, are likely to continue to be worked on.

The Chrysler Voyager as well as The Pacifica, and Grand Caravan, are currently produced in Windsor, with the latter being sold only in Canada. Chrysler, known best for its minivans and as a family-friendly brand, is going to go all-electric by 2028, according to Stellantis at CES this year. The carmaker also revealed the Airflow Concept, which is an all-wheel-drive electrified SUV.

Meanwhile, the Chrysler 300, Charger, and Dodge Challenger, all of which are almost getting ready to be launched, are produced in the Brampton plant. Dodge has announced that the eMuscle, an electric muscle vehicle, will debut in 2024.

The business said in a statement that retooling at Windsor will start in 2023, and modernization, as well as retooling at Brampton, will begin in 2024, with production at the latter resumed in 2025, with an “all-new, adaptable architecture to support the company’s electrification goals.”

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