The Canadian federal government has issued a warning to automaker Stellantis, threatening legal action if the company fails to fulfill its commitments to Canadians as per an auto pact agreement made years ago. Industry Minister Mélanie Joly expressed significant concern over Stellantis’ decision to shift production of its Jeep Compass model from a plant in Brampton, Ont., to one in Belvidere, Ill. This move was part of a $13 billion US investment in the company’s American manufacturing operations, aligning with U.S. President Donald Trump’s vision for a robust automotive sector in the United States.
In response to the challenging U.S. tariff environment, Minister Joly emphasized that Stellantis had made vital promises to Canada and its workforce. She warned that if Stellantis does not honor these commitments, the government would take necessary actions, including legal steps, to ensure accountability and protect the interests of Canadians.
The agreement between Stellantis and the federal and Ontario provincial governments, initiated two years ago, involved potential performance incentives totaling up to $15 billion. The deal required Stellantis to maintain its operations in Canada, particularly in Brampton, in exchange for substantial financial backing. Minister Joly stressed that any failure to fulfill this commitment would be deemed a breach of the agreements.
Despite ongoing engagement with Stellantis regarding the retooling of its Brampton plant, which has been inactive since 2023 for upgrades, Minister Joly emphasized the government’s investment based on Stellantis’ pledge to introduce a new model at the facility. The auto pact agreements with Stellantis and Volkswagen aimed to support the automotive industry in Canada, with significant incentives at stake.
However, Stellantis faced scrutiny from the Ontario government for allegedly not meeting the conditions set under the auto pact, particularly concerning project milestones and job creation at the Brampton plant. As a result, the company did not receive provincial funding. Ontario Premier Doug Ford expressed reluctance to provide further financial support to the Brampton plant, highlighting discrepancies in meeting the pact’s requirements.
Stellantis acknowledged plans for its Brampton plant but refrained from disclosing details to CBC News. When questioned about potential funding from the federal and provincial governments, the company declined to comment on the specifics of its agreements.
