Stellantis, a major player in the global automotive industry, has decided to divest its share in a significant electric vehicle battery plant in Canada. However, this move does not indicate a complete abandonment of electrification by the company.
The decision made by Stellantis to take a 22 billion Euro hit due to scaling back its ambitious electric vehicle plans has sent shockwaves through the automotive sector. CEO Antonio Filosa emphasized that this reset is a crucial step in aligning the company with customer preferences.
In addition to selling its stake in NextStar Energy, a joint venture with LG Energy Solution, responsible for constructing a $5 billion battery facility in Windsor, Ontario, Stellantis has assured that its commitment to low-emission technology remains strong. The company will retain the hundreds of engineers employed in Windsor to focus on electric vehicle and battery research.
Despite uncertainties surrounding the automotive industry’s future in Canada, particularly due to tariffs and market shifts in North America, Stellantis has maintained its support for innovation and production. A significant investment was made in Ontario in 2022, with additional funding from federal and provincial governments. This investment encompassed Windsor and Brampton assembly plants and the Automotive Research and Development Centre (ARDC) in Windsor.
The ARDC expansion has led to the hiring of 650 employees, bringing the total staff count to 800, with a primary focus on electrification and battery testing. Stellantis remains committed to developing various powertrains, including both gas-powered and electric versions of vehicles like the Windsor-built Dodge Charger.
Furthermore, Stellantis has announced plans for additional hiring in sales and marketing across Canada, signaling a positive outlook for the company’s operations in the region. The company’s dedication to innovation and growth underscores its ongoing commitment to advancing electric vehicle technology.