Industry Minister Mélanie Joly threatened legal action against Stellantis less than 24 hours after the automaker announced a shift in Jeep Compass production from Brampton, Ontario, to Belvidere, Illinois.
In a letter to CEO Antonio Filosa, Joly said Ottawa would “exercise all options, including legal,” if obligations tied to government funding are not met—a notably after-the-fact remedy, arriving post-announcement.
Joly argued that the automaker failed to keep the firm’s “full Canadian footprint,” which could constitute contractual default despite billions in public support.
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Stellantis announced the shift Tuesday as part of a US$13-billion US expansion over four years, projecting 3,300 US jobs by 2027, while leaving about 3,000 Brampton workers affected.
“We’ve invested millions of dollars in that facility… if they don’t do so, we’ll hold them to account,” Joly said, highlighting she spoke with Filosa and emphasized taxpayers’ stake.
In 2022, Stellantis committed $3.6 billion to retool Brampton and Windsor for EV and battery programs, backed by $1.4 billion from Ottawa and Ontario for a $5 billion total. Joly’s letter cites legal obligations under the Strategic Innovation Fund and the Special Contribution Agreement with NextStar Energy (Stellantis–LG Energy Solution) that “must be respected.”
She asks Stellantis to quickly identify new mandates for Brampton, extend the Unifor transition program through at least 2027, and honor Canadian supplier contracts. It is worth noting that these conditions, by timing, are seemingly being pressed after the Jeep move, not embedded before in the agreement.
Brampton operations were paused in February amid threats from President Donald Trump to impose tariffs on Canadian goods and work has not resumed since. Earlier this year, Trump imposed a 25% tariff on all vehicle imports to the US with a carve-out for American-made parts in CUSMA-compliant vehicles.
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While Joly flags the “complex” tariff backdrop, she still insists prior commitments must prevail.
Ontario Premier Doug Ford said Stellantis assured him Brampton will continue operating, with a one-year postponement and a plan to “find a new model.” He added that a third shift in Windsor could allow 1,500 of the 3,000 impacted Brampton employees to transfer.
Stellantis, in a statement to CTV News Toronto, called Canada “very important,” while citing the third shift at Windsor Assembly to meet demand for Chrysler Pacifica and new Dodge Charger variants.
“We have plans for Brampton and will share them upon further discussions with the Canadian government,” the company said.
The broader wager is significant: commentators note up to $15 billion was allocated by the government for the Stellantis–LG NextStar battery plant (2023) and up to $52.5 billion across 13 EV projects as of April 2024.
Information for this story was found via CTV News and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
