Canada Warns Jeep-Maker Stellantis Over Plans To Shift Production To U.S.
The Canadian government has warned multinational car manufacturer Stellantis that it may face legal action if it proceeds with plans to move production of the Jeep Compass from Ontario to Illinois.
Earlier this week, Stellantis announced a $13 billion (£9.68 billion) investment in the United States, which includes shifting manufacturing of the popular SUV model from its Brampton plant in Ontario to a facility in Illinois.
Canada’s Industry Minister Mélanie Joly said the company’s decision could breach a “legally binding” agreement made in exchange for significant government financial support. “We will exercise all options, including legal action, to ensure Stellantis honours its commitment to Canadians,” Joly warned in a letter to Stellantis CEO Antonio Filosa.
She noted that Ottawa had invested “billions of dollars” in the automaker, adding that the move could endanger hundreds of jobs and the future of the Brampton facility.
In response, Stellantis said it remains committed to its operations in Canada, citing ongoing investments at its Windsor plant that will create 1,500 new jobs to meet growing demand for Chrysler Pacifica and Dodge Charger Scat Pack models. “Canada is very important to us,” a company spokesperson said. “We have plans for Brampton and will share them after further discussions with the government.”
The dispute comes as the U.S. under President Donald Trump pushes policies designed to boost domestic car manufacturing, including tariffs on Canadian imports. The measures have strained trade relations and led to rising costs for automakers on both sides of the border.
Prime Minister Mark Carney said the government is in talks with Stellantis to safeguard jobs and “create new opportunities” for affected workers.
Stellantis, which owns 14 car brands including Jeep, Chrysler, Fiat, and Alfa Romeo, operates factories across North America, Europe, and South America. In February, the company reportedly paused retooling work at its Brampton plant following the imposition of new U.S. tariffs on Canadian goods.
The latest developments add to growing tensions between Ottawa and Washington over trade, with the U.S. recently introducing new tariffs on Canadian softwood lumber – now facing combined duties of more than 45%.
