The maker of Chrysler, Dodge, Jeep and Ram vehicles on Monday said it will invest $2.8 billion (3.6 billion Canadian dollars) into its Canadian operations for its electric transition, preserving the futures of both Windsor and Brampton assembly plants and creating its first battery lab in North America.
The amount is more than double the commitment Fiat Chrysler Automobiles NV made in 2020 contract talks with Canadian autoworkers union Unifor prior to merging with French automaker Groupe PSA to create Stellantis NV last year. The transatlantic automaker has pledged to become a sustainable mobility tech company, offering an all-electric version of all of its U.S. models by 2029 and investing $35.5 billion into electrification and software by 2025.
"These investments re-affirm our long-term commitment to Canada," Mark Stewart, Stellantis' chief operating officer, said in a statement, "and represent an important step as we move toward zero-emission vehicles that deliver on our customers' desire for innovative, clean, safe and affordable mobility."
A new, flexible architecture that will support the company's electrification plans will go to Brampton Assembly Plant outside of Toronto. Industry forecasters had predicted the plant employing 3,047 people on two shifts could be without product in a few years if the company moves production of the Dodge muscle cars to Belvidere, Illinois. With the new plan, Brampton will be retooled starting in 2024 with production resuming in 2025.
Prior to that, Windsor Assembly Plant will be able to support production of a new "multi-energy vehicle" architecture with all-electric capability for multiple models, according to a news release. Retooling is planned to begin in 2023, and the plant will be able to adjust production volumes as needed to meet changing demand over the next decade.
Stellantis said it will make product announcements for the sites in the future. The plans, however, will return both plants to three-shift operations. This comes after the automaker on Thursday said it was extending the 1,800-person second-shift at Windsor Assembly Plant through the end of the year. The company had been set to cut the shift at the Chrysler Pacifica plant at the end of June. In the first quarter, Stellantis sold more than 26,000 Pacificas in the United States, down 23% year-over-year.
Additionally, by the end of 2023, Stellantis will add 100,000 square feet to its Automotive Research and Development Centre in Windsor for the creation of a battery lab for the development and validation of all-electric and hybrid cells, modules and battery packs. The expansion will support 650 new engineering jobs to support electrified propulsion systems, power electronics, electric machines, motor controls, energy management and embedded software.
The investments are another victory for the province of Ontario, which has made strides to improve its ability to attract business and has allocated hundreds of millions of dollars in incentives to do so. The mobility sector has been a focus to preserve its automotive industry, which could've been in jeopardy with the transition to electric vehicles. Meanwhile, suppliers even across the Detroit River stand to benefit from continued investment in the region.
"Today's deal on made-in-Canada electric vehicles is yet another investment in our workers and in our future," Canadian Prime Minister Justin Trudeau said in a statement. "We're building a world-class Canadian auto industry, an innovative economy, and a clean, strong future for everyone. This is what a healthy environment and a healthy economy looks like."
Government officials last month also joined Stellantis leaders and executives from Korean battery manufacturer LG Energy Solution to announce plans for a $4.1 billion gigafactory to make batteries for electric vehicles manufactured in North America. The plant is expected to create 2,500 jobs and open in the first quarter of 2024. The city of Windsor is in the process of expropriating a home that is a part of the property needed for the facility before the companies break ground later this year.
"Today is yet another example that our plan to build Ontario is delivering huge wins for workers and communities all over this province," Premier Doug Ford said in a statement about Monday's announcement. "Ontario has everything it needs to be North America's auto manufacturing powerhouse once again. Where other governments stood by and watched jobs flee this province, we are getting it done and ensuring that cars of the future are made in Ontario by Ontario workers."
Under the 2020 Unifor contract, FCA had committed to investing $1.13 billion for Windsor Assembly Plant by 2024 for a new platform that supports electrified vehicles. At the time, the now-disgraced former Unifor President Jerry Dias said employment would grow by more than 2,000 starting in 2023 with a 38-week ramp-up of the new platform.
The contract also included derivatives of the Chrysler 300, Dodge Challenger and Dodge Charger at Brampton and new products for Etobicoke Casting Plant, both in Ontario.
