Canada threatens Stellantis with legal action over moving production to US
Key Takeaways
- Canada has threatened Stellantis with legal action over the plan to move Jeep Compass production from Brampton, Ontario, to the US.
- Industry Minister Melanie Joly warned that failing to fulfill commitments made in exchange for financial support would be considered a default.
- The decision is part of Stellantis's announced $13 billion investment in the United States, which will bring five new models to market.
- Canadian political leaders, including the Prime Minister and Ontario Premier, expressed strong disappointment with the move.
- Stellantis stated that Canada remains important and indicated plans for a third shift at its Windsor plant, promising further discussions on Brampton.
Canada is threatening Stellantis NV with legal recourse after the automaker revealed plans to relocate the production of the Jeep Compass model from its Brampton, Ontario facility to a plant in Illinois, USA, as part of a larger $13 billion US investment. Industry Minister Melanie Joly formally communicated to CEO Antonio Filosa that failing to uphold the commitment to maintain Canadian operations, made in exchange for significant government financial aid, would constitute a default under their agreement, potentially leading to legal measures. This development follows a period of uncertainty after Stellantis paused retooling at the Brampton plant earlier in the year amid US tariff announcements. Canadian Prime Minister Mark Carney stressed that Ottawa expects Stellantis to honor its undertakings to the local workforce, while Ontario Premier Doug Ford voiced his disappointment publicly. Stellantis, however, maintained that Canada remains important, citing plans to add a third shift at a Windsor plant and promising further discussions regarding the Brampton facility.
