Despite being the beneficiary of billions in Canadian taxpayer subsidies, Detroit-based Stellantis announced Wednesday plans to recommit to US manufacturing, including plans to shift production to Canada.
Company officials on Wednesday said the next-generation Dodge Durango SUV will be built in Detroit instead of across the river in Windsor.
The decision resolves longstanding tensions with the United Auto Workers (UAW) union in the US and underscores growing pressure to relocate auto production to the United States amid tariff threats targeting Canada and Mexico.
The long-awaited announcement followed a meeting between Stellantis chairman John Elkann and US president Donald Trump, during which Elkann affirmed the company’s intention to strengthen its US manufacturing footprint.
Trump, who was inaugurated earlier this week, has signalled his administration’s intent to impose tariffs on Canadian and Mexican imports to encourage companies like Stellantis to prioritize domestic production.
The UAW had criticized Stellantis for allegedly backtracking on commitments in its 2023 labor contract, including reported plans to shift Durango production to Canada. While Stellantis never formally confirmed the move to Canada, union leaders had raised concerns about potential job losses on the US side of the border.
Instead, it amounts to 1,500 jobs that won’t be coming north. That’s even though Stellantis has received more than $15 billion in subsidies from the Canadian government to build EV components in this country.
“This victory is a testament to the power of workers standing together and holding a billion-dollar corporation accountable,” UAW President Shawn Fain said. “We’ve shown that we will do what it takes to protect the good union jobs that are the lifeblood of places like Belvidere, Detroit, Kokomo, and beyond.”
The decision marks a significant shift in Stellantis’ approach.
Under former CEO Carlos Tavares, the company had faced criticism for cutting its US workforce and scaling back American investments. However, Stellantis’ struggles in 2024, including declining sales and profits, appear to have prompted a strategic pivot.
Filosa told reporters at the recent Detroit Auto Show that reviving the US market would be a cornerstone of the company’s turnaround efforts. “We will grow our auto production and manufacturing here in the United States,” Filosa wrote in Wednesday’s email.
The 500-pound gorilla behind these developments is Trump’s tariff threats, which aim to incentivize companies to relocate production from Canada and Mexico to the US.
While production timelines remain uncertain, the union contract projects new-generation Durango production to begin by 2026.