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Unifor links Stellantis Brampton plant sale review to US tariffs
Stellantis posted a Q2 swing back to profit, but the alleged review of its Brampton, Ontario plant adds labor and trade risk just as it targets higher North American margins.
Unifor said Stellantis told the union it is weighing the sale of its Brampton, Ontario plant, a move the union tied to US tariffs on Canadian goods, according to Yahoo Finance. The issue surfaced August 14, shortly after Stellantis reported a swing back to profit.
Stellantis reported Q2 net profit of 293 million euros, reversing a loss of 1.87 billion euros a year earlier, and it said adjusted operating income more than tripled to 773 million euros. In North America, the region investors focus on, it reported market share rising to 7.4% from 7%, and it said Ram delivered its fourth straight year over year sales gain, up 6%.
The results were accompanied by product momentum, including renewed demand for the reintroduced Hemi V8, and Stellantis is emphasizing higher margin performance vehicles. Yahoo Finance noted the company is leaning further into models such as Ram’s 1500 TRX SRT, while it plans eleven SRT models across Ram, Jeep, and Dodge over the next five years.
Despite the turnaround signals, Yahoo Finance reported Wall Street reacted negatively to the Q2 print, with adjusted operating income falling short of a 914 million euro estimate and the stock down nearly 10% before partially recovering. The report said Stellantis cited US tariffs on Canadian goods as the driver behind the Brampton review, and it added that the plant had been idled for retooling in 2020.