Stellantis NV is exploring an early-stage plan with its Chinese partner Leapmotor to produce electric vehicles at an idled assembly plant in Canada, Bloomberg reported on Thursday.
The discussions are focused on Stellantis’ facility in Brampton, Ontario, which has been idle for several years and where thousands of workers were previously laid off, according to the report. The project, if realized, would mark a significant Chinese-linked investment in Canada’s auto sector following recent policy adjustments on imports of Chinese-made EVs.
In January, Canada agreed to exempt up to 49,000 Chinese-made EVs annually from a 100% tariff under a bilateral arrangement, subjecting those vehicles to a reduced most-favored-nation tariff rate of 6.1%. The agreement is part of a broader shift in policy related to electric vehicle trade.
Canada’s Industry Minister Melanie Joly confirmed the government is involved in discussions but said any new automotive investment would need to rely on domestic labor and components. Local unions and auto-parts suppliers have also urged Stellantis to prioritize full vehicle assembly rather than relying on imported kits.
U.S. officials have raised concerns about potential tariff responses if Canada is used as an indirect route for Chinese-made EVs to enter the United States, adding uncertainty to cross-border trade implications.
Separately, Bloomberg reported that Stellantis and Leapmotor are planning EV production projects in Brazil and Malaysia, initially using a “completely knocked down” (CKD) model, in which vehicles are largely manufactured in China and assembled overseas.
Leapmotor, in which Stellantis holds a stake, reported deliveries of 50,029 vehicles in March, up 34.87% year-on-year and 78.25% from February, according to company data, ending a three-month sequence of month-on-month declines.
Earlier in March, Stellantis said the Leapmotor B10 model would be produced at its plant in Figueruelas near Zaragoza, Spain, with manufacturing expected to begin in the second half of 2026. The announcement was made by Stellantis Chief Executive Officer Antonio Filosa during a financial results presentation.
In a separate development, Bloomberg reported that Stellantis is also considering adopting electric vehicle technology from Leapmotor for use in its European brands, including Fiat, Opel, and Peugeot, citing people familiar with the matter. If implemented, this would represent a shift toward incorporating Chinese-developed EV platforms in vehicles sold in Europe.
Leapmotor said it achieved its first full-year profit in 2025, reporting net income of 540 million yuan ($78.3 million) and revenue of 64.73 billion yuan, according to its financial disclosure.
Separately, BYD is also assessing the Canadian market for a potential manufacturing facility, its executive vice president Stella Li told Bloomberg. “No decision has been made yet,” Li said, adding that the company would prefer to fully own any future plant rather than pursue a joint venture.