Automotive Plant Capacity & Unit Economics Workbench

Plant Parameters

Toronto Assembly Footprint

Benchmark Scenarios

Annual Nameplate Capacity 300,000 units

100k 300k baseline 600k units

Plant Utilization Rate 58%

20% (Subscale) 58% actual 100% (3 shifts)

Average Selling Price (ASP) $44,000

$25,000 $44,000 net $75,000

Fixed Facility Overhead $420M / yr

$150M $420M baseline $900M

Variable Cost per Unit $31,500

$18,000 $31,500 BOM/labor $55,000

EV Transition Capex $1,200M

$0M (ICE only) $1,200M retool $3,000M

Annual Production 174,000 Vehicles assembled per annum

Operating Revenue $7,656.0M Gross wholesale volume

Total Plant Operating Cost $5,891.0M Variable + loaded facility cost

Operating Margin 23.06% +$1,765.0M annual EBIT

Unit Breakeven Output 95,455 Threshold units required

Long-Term Business Case

Viable above 32% utilization

Meets corporate hurdle margins

Manufacturing Unit Cost Curve vs. Net Realization

Average Cost per Vehicle declines with higher utilization due to overhead amortization.

Total Cost/Unit

ASP ($44.0k)

Current Operating Point

Financial Metric	Current Model	Baseline Reference	Variance	Analytical Notes
Annual Assembly Volume	174,000 units	174,000 units	0	Driven by line speed & active operating shifts
Total Annual Revenue	$7,656.0M	$7,656.0M	$0.0M	Net dealer invoices before incentives
Variable Manufacturing Cost	$5,481.0M	$5,481.0M	$0.0M	Direct labor, stamped steel, powertrain & battery BOM
Fixed Plant Overhead	$410.0M	$410.0M	$0.0M	Facility depreciation, energy, tooling & base SG&A
Total Annual Plant Cost	$5,891.0M	$5,891.0M	$0.0M	Full factory loaded manufacturing expense
Operating Profit / (Loss)	$1,765.0M	$1,765.0M	$0.0M	Plant-level manufacturing contribution margin
Critical Breakeven Utilization	31.8%	31.8%	0.0%	Utilization percentage required to clear cash overhead

Context & Industrial Grounding: In late 2024 through 2026 restructuring disclosures, Jeep and Ram parent Stellantis evaluated Canadian manufacturing footprints (including Brampton and Windsor facilities) against capital allocation hurdles for battery electric vehicle (BEV) retooling. As demonstrated in this model, automotive assembly facilities typically require >70% utilization to sustain long-term business cases once high multi-billion dollar platform electrification capex is incurred. When volume drops below critical thresholds, fixed overhead amortization escalates unit costs, eroding corporate investment cases.