Why Is Stellantis Shifting Jeep Compass Production From Brampton to Illinois Now?

In a seismic upheaval rocking the North American auto industry, Stellantis stunned stakeholders on 15 October 2025 by announcing the relocation of Jeep Compass production from Brampton, Ontario, to Belvidere, Illinois, driven by punishing US tariffs under the Trump administration.

This bold production shift, embedded in a colossal £8.47 billion ($13 billion) US investment strategy, endangers 3,000 Canadian auto jobs while pledging over 5,000 new roles stateside, amplifying trade tensions.

As the Canadian economy grapples with this blow, the move underscores how tariffs reshape manufacturing landscapes, compelling firms to prioritise US operations amid uncertain cross-border dynamics.

The Surge of US Tariffs Forcing the Shift

US tariffs imposed earlier in 2025 by President Donald Trump have directly catalysed Stellantis' decision to reroute Jeep Compass production, originally earmarked for Brampton's retooling since early 2024. These measures, aimed at bolstering domestic vehicle assembly, prompted a February pause in Brampton's upgrades, with production slated for the fourth quarter of 2025 now diverted to Illinois to evade financial penalties.

Auto analyst Tom Venetis noted that the tariff regime pressures companies to 'rethink' strategies, deeming the shift unsurprising given US developments. Unifor president Lana Payne lambasted the outcome, declaring 'auto jobs are being sacrificed on the Trump altar,' urging governments to safeguard Canadian positions.

This tariff-driven pivot highlights broader trade imbalances eroding Canadian manufacturing appeal, with emerging incentive programmes favouring US facilities over cross-border operations. Brampton Mayor Patrick Brown echoed dismay, calling for a national strategy against 'deeply disappointing' to preserve the sector's vitality.

Stellantis' £8.47 Billion ($13 Billion) US Expansion Plan

Stellantis unveiled a sweeping £8.47 billion ($13 billion) investment on 14 October 2025 to amplify US production by 50 per cent over four years, encompassing the Jeep Compass relocation to Belvidere. This historic outlay, the largest in company annals, will launch five new vehicles and a novel engine, fostering over 5,000 jobs across Illinois, Ohio, Michigan, and Indiana by 2029.

CEO Antonio Filosa hailed it as accelerating US growth, stating 'success in America is not just good for Stellantis in the US — it makes us stronger everywhere.' The plan sidesteps electric vehicles in favour of gas-powered models, adapting to market demands while dodging tariffs that jeopardise foreign-sourced output.

Reopening Belvidere in 2027 alone injects £400 million ($613 million), supporting Jeep Cherokee and Compass lines. This strategic pivot fortifies Stellantis' North American footprint, prioritising domestic resilience amid volatile trade policies.

Uncertainty Looms for Brampton Workers

The production shift casts a shadow over Brampton's 3,000 workers, whose plant idled since early 2024 now faces an indefinite future, prompting urgent calls for intervention. Prime Minister Mark Carney affirmed collaboration with Ontario and Unifor to 'protect Stellantis employees and create new opportunities in and around Brampton,' insisting the firm honour commitments.

An X post from BNN Bloomberg highlighted the news: 'Stellantis moving Jeep Compass production originally slated for Brampton plant to Illinois'.

Unifor vows resistance, with Payne asserting governments 'cannot stand by while our jobs are shifted to the United States.'

This relocation risks eroding Canada's auto sector, exacerbated by US incentives, yet Stellantis spokesperson LouAnn Gosselin reassured 'Canada is very important to us,' pledging forthcoming plans post-government talks. As the Canada-United States-Mexico Agreement review looms, stabilising trade could mitigate such disruptions.