Stellantis announces $3.95 billion EV upgrade package for Canadian plants

Canada's automotive industry has received a boost with manufacturing congomerate Stellantis announcing a CA$3.6 billion (AU$3.95bn) package to upgrade its existing plants.

Currently operating out of facilities in Windsor and Brampton, Ontario, the modernisation of the factories from 2023 will be made in time for Stellantis's electrification strategy to come into play – with the company aiming for half of its new vehicle sales in the United States to come from electric vehicles by 2030.

The announcement also secures the future for both plants, as Windsor currently assembles the Chrysler Pacifica, Voyager and Grand Caravan people-movers, while Brampton is the only manufacturing facility for the Chrysler 300, Dodge Charger and Challenger – all of which are at risk from the parent company's decision to go electric.

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The Challenger Hellcat is set to go out of production in the near future

Stellantis's North America Chief Operating Officer, Mark Stewart, said the investment was not only one in Canada, but also in the manufacturer's commitment to builder cleaner vehicles.

“These investments reaffirm our long-term commitment to Canada and represent an important step as we move toward zero-emission vehicles that deliver on our customers’ desire for innovative, clean, safe and affordable mobility,” said Stewart.

"We’re grateful to both the federal and provincial governments for their shared vision to create a sustainable future. And, to Unifor and our workforce for their support in helping ensure the viability of our Canadian operations for the long-term."

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The Stellantis plant in Windsor currently assembles minivans such as the Chrysler Pacifica

Canadian Prime Minister Justin Trudeau supported the additional investment, having passed legislation last year to ensure only zero-emission vehicles will be sold in Canada by 2035.

"Today’s deal on made-in-Canada electric vehicles is yet another investment in our workers and in our future," said Trudeau.

"We’re building a world-class Canadian auto industry, an innovative economy and a clean, strong future for everyone. This is what a healthy environment and a healthy economy looks like."

The announcement now brings Stellantis's investment in electrification up to just under AU$500bn, with each of its 14 brands set to move away from internal combustion engines before 2035 at the latest.