Federal politicians grilled a Stellantis NV executive about the move of planned production of the Jeep Compass to Illinois from Brampton, Ont., calling the decision a betrayal of the commitments the automaker made to workers and the government.
Jeff Hines, who was Stellantis Canada's president until last week before being reassigned, was called before Parliament's industry and technology committee to explain the shift, part of Stellantis's plan to boost U.S. production by 50 per cent by 2029. The Brampton plant has been closed and its 3,000 workers laid off for almost two years awaiting a retooling for the Jeep SUV's production.
Politicians pointed to the billions of dollars in grants, loans and other subsidies the Detroit-based automaker has received from Canadian taxpayers. None of the agreements, which are confidential, appear to have come with job guarantees, said Raquel Dancho, a Conservative MP from Manitoba.
She listed taxpayer aid the car company has received in recent years, including $1-billion in grants to the Brampton and Windsor auto plants, $105-million from the strategic innovation fund and $268-million for its battery joint venture in Windsor.
"Hundreds of millions of federal dollars have gone to that Brampton facility," said Nathaniel Erskine-Smith, a Toronto Liberal MP. "Over $100-million has actually flowed. So what do you see as your obligations to the Canadian taxpayer and to the public?"
Mr. Hines said the company is considering two options for vehicles to make at the Brampton plant, but will not make a commitment until the trade relationship between Canada and the U.S. stabilizes.
"As we wait for economic certainty, can we expect you to repay the money?" Mr. Erskine-Smith.
Mr. Hines replied, "We're certainly committed to helping our employees as best we can, and we want to continue with all of the commitments that we've made, and it starts with getting something that works in a trade" agreement.
Mr. Hines declined to make a promise not to cut jobs, but said, "We are not looking to shrink our footprint."
U.S. President Donald Trump in April imposed 25-per-cent tariffs on the non-U.S. content of cars imported from Canada, saying the policy would spur manufacturers to close Canadian plants and move to the U.S.
Trade talks talks between the countries have broken off, leaving question marks over the timing of the renegotiation of the continental free trade agreement.
The uncertainty over the future of the Brampton plant compounds the woes faced by the Canadian auto sector. This month, General Motors Co. ended production of the Chevrolet BrightDrop electric parcel van in Ingersoll, Ont., laying off 1,150 unionized workers. GM says it will eliminate the third production shift at its Oshawa pick-up plant.
The federal government has threatened to sue the automaker over the move, saying it violated funding agreements tied to the company's NextStar battery plant in Windsor.
Finance Minister François-Philippe Champagne then cut by 50 per cent Stellantis's tariff-free quota of imported cars. Under remissions agreements Ottawa and the automakers reached, imported cars are tariff free provided the companies maintain certain production levels in Canada.
Flavio Volpe, head of the Automotive Parts Manufacturers' Association, told the committee the Brampton plants supported up to 10,000 jobs at nearby parts makers. Most of those jobs are gone. "We were all waiting for the Compass," he told the committee.
Lana Payne, national president of Unifor, which represents autoworkers, testified she had no confidence in Mr. Hines's statement that the company could reopen the plant and boost employment in Canada.
"They've just violated a commitment to us," she said, "and have said that they are shifting a product that was promised and committed to the workers of Brampton to a plant in the United States to appease Donald Trump's trade aggression."
Ms. Payne warned if Canada doesn't find a way to keep its auto production in place until a trade deal is reached, "then we will lose it all."