Last autumn, Jeep announced that it was working on a new Compass small crossover. It felt about time, seeing as how the current one’s been on sale since 2016, but it now looks like we could be waiting longer than expected. Automotive News reports that a replacement has been delayed, and judging by where it’s expected to be made, it’s quite possible that the next Compass has been caught in the middle of a geopolitical shift.
See, with combustion-powered Dodge Charger, Dodge Challenger, and Chrysler 300 production in Brampton having wrapped up in 2023, Stellantis set to work upgrading the Canadian plant for production of the next-generation Jeep Compass. With a planned $970 million in plant investment, a new contract with Canadian union Unifor, and plans to kick off production in 2025, the automaker got to work.
However, just over a year since the big announcement, Automotive News reports that work’s been put on pause. The halt is said to be temporary, but temporary could mean a lot of things. The automaker didn’t provide a timeline, instead telling the outlet:
As we navigate today’s dynamic environment, Stellantis continues to reassess its product strategy in North America to ensure it is offering customers a range of vehicles with flexible powertrain options to best meet their needs. As a result, the company is temporarily pausing work on the next-generation Jeep Compass, including activities at the Brampton Assembly Plant. This does not change our previously announced investment plans for Brampton.
Well, the most obvious suspect is talk of potential tariffs on Canadian goods. Not only did these proposed blanket tariffs just start seeming like a real threat in the public’s eyes this year, the possibility of rates equalling or exceeding 25 percent certainly seems capable of forcing a holding pattern.
Unifor, the Canadian union representing workers at Brampton Assembly, has the same suspicion, with national president Lara Payne writing in a statement, “The chaos and uncertainty plaguing the North American auto industry, which is under the constant threat of tariffs and a dismantling of EV regulations from the United States, are having real-time impacts on workers and corporate decisions.”
Indeed, the current Compass pictured below is a value-focused vehicle and one that’s critical to Jeep’s state in North America right now. In 2024, it posted the largest year-over-year sales growth of any Jeep model that was also on sale the previous year, and managed to sell more units than the Wagoneer, Grand Wagoneer, Renegade, and Gladiator combined. With a current starting price of $28,495 including freight, it’s an important stepping stone to get new buyers into the Jeep brand, and substantial tariffs could seriously threaten the next-generation model’s market position.
At the same time, talk of tariffs probably isn’t the only driver of this temporary halt on all things next-generation Compass. Automotive News reports that back in October, Stellantis delayed production of pilot units — the first few cars off the line built strictly for quality and process control purposes — from the week of Jan. 20 until sometime in May. Some sort of delay could’ve been coming for a while, and more pieces start to fall into place with Automotive News stating that “Stellantis planned to produce an electric Compass first in Brampton, followed by a gasoline model.”
It’s no secret that the new White House administration wants to walk back tax credits on electric vehicles, and while a substantial federal tax credit on a Canadian-built electric crossover could take a dent out of proposed tariffs, the possibility of tariffs appearing as incentives disappear could complicate the economic case for an electric Compass built in Brampton.
So, what’s next for the next-generation Jeep Compass? Well, Automotive News reports possible delays of eight months to a year, but a lot can happen in that time, so I guess we’ll just have to wait and see how things go. It’s a troubling time for the roughly 3,000 unionized workers at Brampton Assembly, along with all the suppliers waiting for Jeep to crank up production of the next-generation Compass. Stellantis seems to be asking a lot of people to put their lives on hold, and that doesn’t sit quite right.
What’s more, I have a strong feeling this won’t be the only time we see something like this happen. As Matt mentioned in yesterday’s Morning Dump, the whole industry is holding its breath right now. Formerly stable manufacturing channels are being threatened, the all-in EV push doesn’t feel so all-in anymore, profitability is falling for many automakers, and the only thing many companies can do right now is wait. My prediction? Whatever’s already being made in Canada and Mexico will stay the course for now, but we could be waiting a while to see the fruits of new car-building investment in those countries.
Top graphic image: Stellantis
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She’s dead, Jim.
“Might be”… we shall see. Lots of interesting things happening here.. see how it plays out I suppose.
And nothing of value was lost. [Referring to the model itself, not any economic issues]
Stellantis has a habit of on blaming poor business on different things. This at least makes sense as it’s very much up in air on what is supposed to be entry level car that cannot afford any price increase especially from tariffs.
It’s hard to believe $30k is entry level by I guess in overpriced Stellantis land that’s where it is. If I remember Compass and patriot came out as bail out era specials for under $20k that could be had in the mid teens.
$30k is the new $20k.
“Stellantis seems to be asking a lot of people to put their lives on hold, and that doesn’t sit quite right.”
What’s the option for Stellantis? Just plow ahead, spend more money, and then if a tariff does get implemented and sales end up a fraction of projections, stuff the lots with non-sellable cars or just lay everyone at the whole plant off in addition to have wasted more money (which would get criticized on this site as well)?
While much money has been spent to date, it seems prudent to wait and see for a bit to see what really is going to happen. The vehicle that can perhaps handle a tariff is an expensive one, not something mass-market where price matters as much (or more) than any other aspect. Stellantis just got a while lot of flak for overpricing their vehicles recently, they know they can’t sell them at inflated prices.
The other option for Stellantis is to write an 8 figure check to the occupant of 1600 Penn. Ave for “special consideration”
That should make many of their regulatory and production issues go away.
All the tariffs are just going to kill North American manufacturing.
You’d think that a “successful businessman” would understand that all this chaos is not good for business and citizens in general.
But he was never successful at business.
He has never cared about citizens in general beyond getting them to vote for him.
And he has partnered with someone who is only in it for himself and his own businesses.
It’s all about power, control, paybacks, self-enrichment and revenge.
Well said.
Technically musk is a terrible businessman too
Both of them are only good at being hype-men and failed upwards despite their own terrible instincts
And both only saw success at all because of family money.
This is not meant to be punitive, but the richest man in the world is the worst businessman?
First I didn’t say the worst, I said terrible
Second that is the fallacy of assuming wealth = talent
You don’t assume lottery winners are geniuses, I hope?
https://xkcd.com/1827/
Depends how many stupid people he’s standing on…
A MAGA Recession is looking like a near certainty. Nobody can make any plans beyond the current day.
Spot on. With Musk, we are witnessing not only the greatest theft of data in broad daylight, but also the exposure of personal information that will allow this lawless administration to carry out retribution, self-enrichment, and the attempted normalization of authoritarianism.