Stellantis is in preliminary discussions with Chinese electric vehicle maker Leapmotor to assemble cars at its shuttered Brampton, Ontario plant, sources familiar with the matter told Bloomberg. The facility has been idle for several years following workforce reductions, and this proposal could mark the first significant Chinese investment in Canada’s auto industry since Ottawa agreed to lower tariffs on imported EVs from China.
In January, Canada and China finalized an arrangement allowing up to 49,000 Chinese-made electric vehicles per year to enter Canada under a 6.1% most-favored-nation tariff, down from the previous 100% duty. The deal, often referred to as the EV-for-canola agreement, aims to diversify Canada’s auto supply chain and supports the government’s pivot toward welcoming Chinese vehicles. Transport Canada has committed to certifying new Chinese EV models within eight weeks of application.
Ottawa has emphasized that any investment at the Brampton site must involve Canadian labor and domestic parts content. Local unions and parts suppliers have urged Stellantis to pursue full vehicle assembly rather than relying on complete knock-down (CKD) kits, which would see cars largely built overseas and simply bolted together in Canada. U.S. officials have also cautioned that vehicles assembled under these terms could face trade challenges or tariffs if shipped across the border.
Bloomberg reports that Leapmotor and Stellantis plan to use a CKD approach for initial projects in Brazil and Malaysia before potentially shifting toward full production. If the Brampton venture moves forward, it would represent a major step for Leapmotor’s international expansion.
Leapmotor has reported a strong rebound in recent months, delivering 50,029 vehicles in March—a 34.9% increase year-over-year and a 78.3% rise from February. In the first quarter, deliveries reached 110,155 units, up 25.8% compared to the same period last year but down 45.2% from the previous quarter. The company achieved nearly 600,000 deliveries in 2025 and recorded its first full-year profit. Leapmotor plans to launch four new models—A10, D19, A05 and D99—in 2026, targeting one million deliveries for the year and expecting those models to account for about 60% of total sales. The automaker will also unveil an Ultra version of its Lafa 5 at the upcoming Beijing Auto Show.
Source: CNEV Post
