The Canadian federal government has issued a warning to automaker Stellantis, threatening legal action if the company does not fulfill its commitments to Canadians as agreed upon in an auto pact promising substantial performance incentives. Industry Minister Mélanie Joly conveyed her “extreme concern” to Stellantis CEO Antonio Filosa regarding the company’s decision to relocate production of its Jeep Compass model from Brampton, Ontario, to Belvidere, Illinois. This communication was documented in a letter shared with CBC News and subsequently published on Joly’s social media platform.
The announcement of this production shift was made in conjunction with a $13 billion USD investment in the company’s American manufacturing operations, aligning with U.S. President Donald Trump’s vision of bolstering the American automotive industry. In response to the current challenging tariff environment, Joly emphasized that despite these circumstances, Stellantis had made significant commitments to Canada and its workforce.
The company had previously entered into an agreement with the federal and Ontario provincial governments, involving potential performance incentives totaling up to $15 billion. These incentives were contingent upon Stellantis meeting specified conditions, including maintaining production in Brampton. Failure to adhere to these terms would be considered a breach of the agreements.
During a press conference, Minister Joly highlighted the ongoing engagement with Stellantis as the Brampton facility undergoes retooling. The plant has remained inactive since 2023 as preparations are made for the production of new vehicle models. The auto pact, established in 2023, aimed to uphold Stellantis’s commitments in Canada, including its production mandate at the Brampton plant.
A spokesperson from Ontario Premier Doug Ford’s office indicated that Stellantis had not met the conditions outlined in the auto pact, particularly regarding project milestones and job creation at the Brampton facility. Consequently, the company did not receive provincial funding for this project. Premier Ford expressed his reluctance to provide financial support for the Brampton plant, emphasizing that the conditions must be met.
Stellantis responded to inquiries by CBC News by stating that they have upcoming plans for the Brampton plant, which they intend to discuss with the federal government. However, details regarding the company’s financial arrangements with the federal and Ontario governments were not disclosed, citing confidentiality around the agreements.