Stellantis is currently in talks to build electric vehicles in Canada with its Chinese partner, Leapmotor. This move is a huge sign of how fast the car industry is changing now that Canada has opened the door to the world’s biggest EV market.
According to people familiar with the matter who spoke with Bloomberg, these talks are still in the early stages. If the two companies pull the trigger, it would be the first major Chinese auto investment in Canada since Prime Minister Mark Carney and President Xi Jinping reached a deal in January to lower tariffs on Chinese-made EVs (they would allow 49,000 cars into Canada).
The plan is reportedly centred on the idled Stellantis assembly plant in Brampton, Ontario. Thousands of unionized workers there have been laid off for years. They were originally supposed to build a new Jeep SUV, but after President Donald Trump announced massive tariffs, Stellantis moved that project to a U.S. factory instead.
That decision didn’t sit well with Ottawa, which threatened to claw back millions in taxpayer subsidies. Now, Industry Minister Melanie Joly is in active discussions with Stellantis to find a future for the plant. Joly has been vocal about wanting “Canadian-Chinese” joint ventures that use local parts and software to build cars for the rest of the world.
However, there could be a problem with this plan, as the U.S. is not exactly thrilled about the idea. Officials have warned Canada about being used as a “back door” for Chinese tech to enter the U.S. Pete Hoekstra, the U.S. ambassador to Canada, was pretty blunt about it, suggesting these cars might be blocked at the border. “That ain’t gonna happen,” he told Rebel News when asked if Chinese-linked EVs would be allowed across.
Stellantis already owns a 20% stake in Leapmotor and they’ve formed a joint venture to sell EVs globally. They’re already planning similar projects in Spain, Brazil, and Malaysia.
A Stellantis spokesperson says all options are still on the table for Brampton. The company says it’s focused on a “strong Canadian footprint” and making sure any investment is a long-term commitment that supports local workers and suppliers.
It’s not just Stellantis that wants to build EVs in Canada. As of early 2026, BYD told Bloomberg the company is actively studying the Canadian market for a wholly owned manufacturing plant and is even open to acquiring a struggling legacy automaker to speed up the process.
Would you buy a Chinese EV that’s made in Canada?
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Don’t quote propaganda news outlets, screaming that China vehicles are evil. All modern vehicles snoop on your driving and other things, and strong privacy laws keep that snooping somewhat controlled. Have the cellular radio turned off in your vehicle, and take back your privacy rights. Simply done with the mechanics scan tool.
Stellantis owes Hundreds of Millions (maybe Billions) of Dollars in welfare, back to the Canada government, for walking away from Canada production.
The U.S. goes backward, and Canada keeps going forward.
Probably a much better option for Stellantis than having to pay the government back for all the money they’ve been given.
Incidentally – yeah, the Canadian government subsidizes car industry. Much liked the Chinese government does there – and one of the arguments used by anti-Chinese EV crowd here. As for ‘spy cars’ – American car companies have been doing that since at least OnStar. And given current Administration, we should have as much comfort in that as we should with Chinese vehicles.