Canada Takes Stellantis to Task Over Auto Production Shift
The Canadian government has officially launched a dispute resolution process against Stellantis, the global automotive giant, after the company decided to move vehicle production from its Brampton, Ontario plant to the United States. Industry Minister Mélanie Joly made this announcement in the House of Commons, describing the move as “completely unacceptable” and a clear violation of commitments made under federal contracts.
Joly explained that Ottawa has initiated a formal 30-day settlement process to recover taxpayer money and push Stellantis to return production to the Brampton facility. She emphasized that this isn’t a symbolic action but a necessary step to enforce accountability. The decision comes after Stellantis announced plans to relocate the production of its Jeep Compass from Canada to Illinois, leaving thousands of Canadian workers in limbo.
The shift has serious implications for the country’s auto industry, especially since around 3,000 workers remain furloughed in Brampton. They had been laid off earlier this year while the plant was being revamped to prepare for new production lines—a process that now appears to be on hold indefinitely.
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Ottawa argues that Stellantis has breached federal contracts that were tied to commitments for manufacturing in both Brampton and Windsor. The situation has been further complicated by U.S. President Donald Trump’s aggressive trade stance, which includes new tariffs aimed at luring automotive jobs and investments back into the United States.
In her testimony, Joly said, “If the Brampton facility ceases its production, there will be a violation of a contract.” Conservative MPs pressed her for details about federal funding agreements linked to Stellantis, including a $15 billion contribution agreement between the government and NextStar Energy—a joint venture between LG Energy Solution and Stellantis—for a major EV battery plant. Of that sum, a third was expected from Ontario, with the remaining two-thirds from the federal government.
Government officials faced criticism for refusing to release full details of these agreements, citing commercial confidentiality clauses. However, Joly promised transparency and said discussions were ongoing to reveal as much information as possible.
Conservative MPs expressed frustration, arguing that billions of taxpayer dollars had been committed to a foreign company now sending jobs south. One MP even questioned whether the deal could go down as one of Canada’s biggest policy blunders.
Stellantis, for its part, said the decision to move production was not taken lightly and that it is exploring ways to bring affected workers back. Meanwhile, Joly said she’s working closely with Ontario’s Economic Development Minister Vic Fedeli and labour unions such as Unifor to safeguard Canada’s auto industry—an industry she described as “the very backbone of the Ontario economy.”
Her message was clear: Canada won’t stand by quietly while its manufacturing jobs are siphoned away. The dispute with Stellantis marks one of the most high-profile tests yet of Ottawa’s willingness to defend its industrial base and the workers who depend on it.
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