BYD considers taking over idled Stellantis plant in Toronto suburbs

Investing.com -- Chinese automaker BYD Co. has inquired about taking over an idle Stellantis NV plant in the Toronto suburbs, according to a local politician.

Patrick Brown, the mayor of Brampton, Ontario, said BYD approached him about six months ago to discuss making buses at the factory. Stellantis had been retooling the plant to manufacture the Jeep Compass, but the company halted that plan last year when the US adopted a policy of tariffs on foreign autos.

Brown said he also received inquiries from Leapmotor International, a joint venture between Zhejiang Leapmotor Technology Co. and Stellantis, as well as from an Italian automaker. Bloomberg News reported in April that Stellantis was discussing options for building electric vehicles in Canada with Leapmotor.

Most of the vehicles Canada produces are exported to the US. The trade war and the lack of a new product earmarked for the 40-year-old factory have clouded the future for thousands of people who work there. Unifor, the union representing those workers, said this month that Stellantis is considering selling the plant.

"If the US takes a position that causes us to no longer be able to be a partner with them on autos, there is a world of possibilities," Brown said. "There are global companies that want Canadian manpower."

BYD previously made buses in another Toronto suburb. The company does not currently make passenger cars or trucks anywhere in Canada or the US.

President Donald Trump put 25% tariffs on foreign cars and trucks. For Canadian-made vehicles, the rate is lowered based on the percentage of US-made components. Trump threatened last week to raise that to 50% as of Jan. 1 and to put tariffs on auto parts from Canada.

"Stellantis told me that as long as there's tariffs on autos, there's no business case for auto jobs in Canada," Brown said. That's the situation "whether it's an 8% tariff, a 50% tariff, or 100% tariff," he added.

The Brampton factory has not produced vehicles since late 2023. With no immediate US-Canada trade deal on the horizon, "I'd have to say I have a pretty bleak prognosis" for reopening, Brown said.

In January, Canadian Prime Minister Mark Carney struck a deal that lowered tariffs on Chinese electric vehicles. The prime minister framed it as necessary because of US moves to harm the Canadian auto industry, and said the government's goal is to generate "new Chinese joint-venture investment in Canada" to "create new auto manufacturing careers for Canadian workers."

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