DETROIT, Feb 20 (Reuters) - - Stellantis ( STLA ) is

pausing work on its next-generation Jeep Compass compact SUV

including retooling a plant in Canada designated to build the

vehicle, the company said Thursday.

The nearly four-decade-old assembly plant in Brampton, Ontario,

was closed for retooling in 2024, and production was due to

resume in 2025 with the new Compass, according to a company fact

sheet dated June 2024.

Production is now slated to start in the first quarter of

2026, a company spokesperson said on Thursday.

The small SUV was to be built on an architecture meant for

electric vehicles, with flexibility for other powertrains,

including hybrids. Automotive News previously reported the pause

on Thursday.

The Trump administration has created uncertainty for

automakers with the threat of 25% tariffs on parts and vehicles

imported to the U.S. from Canada and Mexico as soon as March 1

and plans to reverse the Biden administration's campaign to

transition away from fossil fuel-powered transportation.

Unifor, the union representing Stellantis ( STLA ) workers in Canada,

said the news was "a matter of grave concern."

"The chaos and uncertainty plaguing the North American auto

industry, which is under the constant threat of tariffs and a

dismantling of (electric vehicle) regulations from the United

States, are having real-time impacts on workers and corporate

decisions," Unifor President Lana Payne said in a statement.

Sam Fiorani, vice president at research firm AutoForecast

Solutions, said the pause is more likely related to the

automaker rethinking its priorities among gas and electrified

vehicles.

Stellantis ( STLA ) said in a statement it is continuing "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."

The automaker has been making strategic changes to recover from

a difficult 2024 in which former CEO Carlos Tavares unexpectedly

left after his aggressive pricing strategy contributed to

plummeting vehicle sales in the U.S.

The automaker's new leadership is quickly reshaping its product

plan. In December, Stellantis ( STLA ) moved up the launch of a new

hybrid version of the best-selling Ram pickup ahead of an

all-electric version.