Canada Warns Stellantis of Legal Action Over Production Shift to US

Canada has issued a sharp warning to Stellantis NV, threatening legal action if the carmaker goes ahead with plans to move Jeep Compass production from Ontario to Illinois.

In a letter sent Wednesday to Stellantis CEO Antonio Filosa, Minister of Industry Mélanie Joly said the company was breaking commitments it made in exchange for billions in public funding.

“Anything short of fulfilling that commitment will be considered a default under our agreement,” Joly wrote. “If Stellantis fails to honour its obligations, Canada will exercise all options, including legal.”

Stellantis announced a $13 billion investment in the United States earlier this week, promising five new vehicle models. The plan includes moving Jeep Compass assembly from the Brampton, Ontario plant to Illinois, a shift that immediately angered Ottawa.

According to Bloomberg, which first reported on the letter, Joly’s warning reflects growing tensions after Stellantis paused retooling at Brampton back in February, shortly after President Donald Trump’s tariffs on Canadian goods rattled the auto sector.

Prime Minister Mark Carney said in a statement that Canada “expects Stellantis to fulfil its undertakings to workers” and vowed that his government would “develop the right measures to protect Stellantis employees.”

Ontario, which produces around 40 percent of Canada’s GDP, is now at the centre of the dispute.

“I have spoken with Stellantis to stress my disappointment with their decision,” Ontario Premier Doug Ford wrote on social media.

Meanwhile, Stellantis tried to calm the backlash.

“Canada is very important to us,” spokesperson LouAnn Gosselin said in an emailed statement, adding that the company plans to add a third shift at its Windsor facility.

“We have plans for Brampton and will share them upon further discussions with the Canadian government.”