Joly Blocks Stellantis Plan to Assemble Chinese EVs from 'Kits' at Brampton Plant

# Joly Blocks Stellantis Plan to Assemble Chinese EVs from 'Kits' at Brampton Plant

April 2026 — Foreign Affairs Minister Mélanie Joly has categorically rejected Stellantis's proposal to assemble Chinese electric vehicles from "kits" at its idled Brampton, Ontario plant. This decision draws a clear red line in Canada's Chinese EV import policy — and redefines what's acceptable under USMCA.

The Stellantis Plan: 'Cars-in-a-Kit'

Stellantis — the group behind Chrysler, Dodge, Jeep, and Ram — had proposed a clever arrangement: import Chinese EVs as semi-knocked-down kits (CKD, completely knocked down) and assemble them at its Brampton plant, shuttered since 2024. The plant, which once employed over 3,000 workers, is a symbol of Ontario's manufacturing decline — and Stellantis saw a revival opportunity.

The logic was straightforward: if vehicles are assembled in Canada, they could be considered "North American-made" and thus become eligible for the $5,000 federal EVAP rebate — an advantage that directly imported Chinese EVs cannot obtain.

But Ottawa saw through the game.

Joly's Rejection: 'No Backdoor'

Mélanie Joly was direct: "we will not accept 'cars-in-a-kit.'" The Trudeau government considers that assembling Chinese kits in a Canadian plant does not constitute "North American manufacturing" under USMCA rules — and would therefore not qualify for the EVAP rebate.

The Industry Minister backed this rejection, confirming there is "no plan" for the shuttered Brampton plant involving Chinese EV kit assembly.

Ottawa's logic is consistent:

• Canada opens its market to Chinese EVs through the 49,000-vehicle quota and 6.1% preferential tariff
• But it will not allow Chinese automakers to circumvent USMCA rules of origin through token assembly on Canadian soil
• "North American manufacturing" must involve substantial local content — not just bolting on bumpers

What This Means for the Industry

This rejection has three major implications:

1. Kit Assembly Is Dead — For Now

2. Stellantis Loses a Revival Option for Brampton

3. The Signal to BYD, Chery, and Dongfeng

The Canadian Paradox

This decision illustrates the paradox of Canadian policy: Ottawa wants affordable EVs for consumers but doesn't want to compromise the North American trade rules that protect Ontario's auto industry.

The result is a narrow path:

It's a third way that doesn't exist yet — and one that Joly's rejection makes even harder to chart.

FAQ

Q: What is a CKD 'kit'?

A: CKD (completely knocked down) means the vehicle is manufactured in China, partially disassembled, shipped as parts, then reassembled in a local plant. Stellantis proposed doing this assembly at Brampton.

Q: Why did Stellantis want to assemble Chinese EVs?

A: Stellantis lacks an affordable EV in its North American lineup. Partnering with a Chinese automaker to assemble existing models was a quick way to fill this gap — while reviving the shuttered Brampton plant.

Q: Is Joly's rejection final?

A: Yes, in its current form. But the principle could be renegotiated if a Chinese automaker proposes major industrial investment with significant local content — not just bolting parts together.