- Stellantis is exploring an early-stage plan with Leapmotor to produce EVs at an idled Canadian plant.
- The move would mark the first major Chinese investment in Canada's auto sector since the country struck a deal to lower tariffs on China-made EVs.
Stellantis NV is exploring an early-stage plan with its Chinese partner Leapmotor to build EVs at an idled assembly plant in Canada, Bloomberg reported Thursday.
The discussions are primarily focused on a Stellantis facility in Brampton, Ontario, which has been idled and thousands of workers laid off for years.
It would be the first major Chinese investment in Canada's auto industry since the nation reached an agreement to reduce tariffs on Chinese-made EVs, the report noted.
In January, Canada agreed to exempt up to 49,000 Chinese-made EVs annually from a 100% tariff. This is part of the country's pivot away from its previous policy of keeping Chinese vehicles out.
Under the EV-for-canola agreement, these vehicles will be subject to a 6.1% most-favored-nation tariff rate.
Last month, BYD executive vice president Stella Li said in an interview with Bloomberg that the company is studying the Canadian market for potential manufacturing facilities.
Canadian Industry Minister Melanie Joly confirmed the government is participating in discussions, but insisted that any new automotive investments must use local Canadian labor and parts.
Local unions and auto-parts suppliers have warned Stellantis against relying solely on knock-down kits, strongly demanding full vehicle assembly operations at the plant.
US officials have repeatedly warned Canada of tariff retaliation risks if it acts as a backdoor, making it highly uncertain whether these vehicles will be allowed to cross the US border.
Leapmotor and Stellantis also plan to produce EVs in Brazil and Malaysia, but those projects will adopt a "completely knocked down" (CKD) model — where vehicles are primarily manufactured in China and shipped overseas for final assembly — at least initially, according to Bloomberg.
The potential North American expansion comes as Leapmotor rebounds from sluggish sales, with the Chinese EV maker delivering a robust 50,029 vehicles in March.
That represents a 34.87% increase year-on-year and a 78.25% jump from February, according to data it released yesterday.
In the first quarter, Leapmotor delivered 110,155 vehicles, up 25.82% year-on-year but down 45.21% from the fourth quarter of 2025.
To sustain its recent sales momentum, Leapmotor is advancing its new product timeline and will debut the Ultra version of the Lafa 5 at the Beijing Auto Show later this month.
Leapmotor delivered nearly 600,000 new vehicles in 2025 and achieved its first full-year profit on the back of strong revenue growth.
The company is targeting one million vehicle deliveries for the full year of 2026, and will launch four new models throughout the year: the A10, D19, A05, and D99.
Leapmotor announced the launch schedule for the four new models last month and expects them to contribute 60% of its 2026 sales.
