Finance
Stellantis in Talks to Build Chinese EVs at Canadian Plant, Bloomberg News Reports
Published by Global Banking & Finance Review®
Posted on April 1, 2026
2 min readLast updated: April 1, 2026
Add as preferred source on GoogleQuick Summary
Stellantis is in preliminary talks with Chinese EV maker Zhejiang Leapmotor to build vehicles—possibly at an idled plant in Brampton, Ontario, Canada—signaling potential local production and export ambitions. Discussions are early-stage with no decisions made yet.
Stellantis in talks to build Chinese EVs at Canadian plant, Bloomberg News reports
Stellantis and Leapmotor Explore Canadian Electric Vehicle Production
April 1 (Reuters) - Stellantis is discussing options for building electric vehicles in Canada with Chinese partner Zhejiang Leapmotor Technology, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Stellantis-Leapmotor Partnership Overview
In 2023, Stellantis bought a 21% stake in Leapmotor for $1.6 billion. The two automakers also formed the joint venture, Leapmotor International, in which Stellantis holds a 51% stake.
Early Stage Discussions for Canadian EV Manufacturing
The talks for building EVs in Canada are in an early stage, Bloomberg News reported, adding that the discussions were focused on an idled Stellantis assembly plant in Brampton, Ontario.
Brampton Plant History and Production Changes
The nearly four-decade-old assembly plant was closed for retooling in 2024 and was set to reopen in 2025 to produce the Jeep Compass compact.
However, Stellantis paused retooling and moved production of the Compass to a facility in Illinois after U.S. President Donald Trump imposed tariffs on Canadian goods.
Legal and Governmental Responses
In response, Canada threatened legal action against the car maker, noting that the company had agreed to maintain its Canadian presence in exchange for substantial financial support.
In November, the two parties entered dispute settlement proceedings to bring back production to the plant.
Future Prospects and Ongoing Negotiations
It is not clear what conditions might be placed on any Leapmotor-Stellantis venture in Canada, the Bloomberg report said, adding that talks are still preliminary and no decisions have been made.
"Stellantis ... is actively evaluating future programs for Brampton," the company said.
"We are in active discussions with government officials and key stakeholders to ensure that the conditions for success are in place to support continued investment in Canada," it added.
Comments from Stakeholders
Zhejiang Leapmotor Technology did not immediately respond to Reuters' requests for comment.
(Reporting by Natalia Bueno Rebolledo in Mexico City and Aishwarya Jain in Bengaluru; Editing by Anil D'Silva)
Key Takeaways
- •Stellantis and Leapmotor are exploring assembling Chinese-designed EVs in Canada at an idled Brampton facility—still in preliminary talks and no final plan announced yet (reddit.com)
- •The proposal comes amid efforts to navigate tariffs and reduce reliance on Chinese exports by co-producing locally for domestic and global markets (caranddriver.com)
- •This fits within Stellantis’s broader strategy with Leapmotor—leveraging its 51% joint venture to distribute and eventually manufacture Leapmotor EVs outside China, including Europe, and possibly North America (caranddriver.com)
References
Frequently Asked Questions about Stellantis in talks to build Chinese EVs at Canadian plant, Bloomberg News reports
1What is Stellantis reportedly planning in Canada?
Stellantis is reportedly discussing the option to build electric vehicles in Canada with its Chinese partner Zhejiang Leapmotor Technology.
2Who is Stellantis partnering with for Canadian EV production?
Stellantis is partnering with Zhejiang Leapmotor Technology, a Chinese electric vehicle maker.
3Has Stellantis confirmed the talks about Canadian EV production?
Stellantis and Zhejiang Leapmotor Technology have not immediately responded to requests for comment on the reported talks.
4Which media outlet reported the Stellantis-Canada EV talks?
Bloomberg News reported the discussions, citing people familiar with the matter.
