BYD has reportedly explored taking over Stellantis’ idled Brampton Assembly plant in Ontario, as U.S. tariffs on Canadian goods continue to strain trade relations and create potential openings for Chinese companies seeking a larger foothold in Canada.
Tariffs Create New Opportunities
The Trump administration has imposed 50% tariffs on about $20 billion worth of Canadian goods, a move expected to keep trade relations between the United States and Canada under pressure. The changing trade environment could create opportunities for other companies, including Chinese businesses facing strong U.S. trade restrictions.
According to Automotive News, Brampton Mayor Patrick Brown said BYD inquired about taking over the Stellantis facility six months ago.
The Brampton Assembly plant has been idle since late 2023, when it was initially shut down for retooling. The factory had been expected to produce the next-generation Compass, but Stellantis halted that plan after U.S. tariffs complicated the business case.
As a result, the Compass for the U.S. market remains in its second generation, which debuted about a decade ago.
BYD Could Expand Its Presence in Canada
Acquiring the Brampton facility would expand BYD’s presence in Canada as the country opens its market to more Chinese-made electric vehicles. Under a recent agreement, Canada is allowing up to 49,000 Chinese-built EVs annually at a reduced 6.1% tariff.
Tesla has already taken advantage of the arrangement by importing Shanghai-built Model 3 vehicles, giving Canadian buyers a lower-priced entry point than U.S. models.
BYD’s discussions regarding the Brampton plant, however, focused on producing electric buses rather than passenger vehicles. The automaker already manufactures electric buses in Lancaster, California.
Its buses are used by transit agencies, universities and transportation services around Disneyland Resort.
Other Companies Have Also Expressed Interest
Chinese automaker Leapmotor has also considered using the Brampton Assembly plant. Earlier reports indicated the company could assemble vehicles from knock-down kits, with vehicles largely built in China before receiving final assembly in Canada.
Such an arrangement would create fewer jobs than full-scale manufacturing and could face opposition from Unifor.
Brown also said Canadian defense companies Roshel Inc. and Dominion Dynamics had expressed interest in the facility.
Brampton Plant Remains Idle
As the United States strengthens trade barriers, Canada could increasingly look to other potential investors to preserve jobs and support local businesses, including companies from China. The U.S. has imposed strong restrictions on Chinese vehicles, and its ambassador to Canada has said Chinese-made cars would not be permitted to cross the U.S. border.
For now, the Brampton Assembly plant remains idle. North American production of the next-generation Compass has instead been assigned to the Belvidere Assembly plant in Illinois, where production is scheduled to begin in 2027.
