Canada may sue Stellantis over Jeep production shift

Published 15/10/2025, 18:34
© Reuters.

Investing.com -- Canada has threatened legal action against Stellantis NV after the automaker announced plans to move Jeep Compass SUV production from Brampton, Ontario to Belvidere, Illinois in response to President Donald Trump’s tariffs.

In a letter sent Wednesday to Stellantis CEO Antonio Filosa, Industry Minister Melanie Joly stated the company would be considered in "default" of agreements tied to federal and provincial government support. The letter, seen by Bloomberg, described the planned production shift as "unacceptable."

Joly demanded Stellantis "quickly identify new mandates for Brampton" to ensure the facility remains central to the company’s manufacturing operations. She also insisted that contracts with Canadian suppliers be honored.

The minister referenced "legally binding commitments" Stellantis had made previously, including those associated with accepting support through Canada’s Strategic Innovation Fund.

The Canadian government is also pressing Stellantis to extend the workers’ transition program, previously agreed to with the Unifor union, until at least 2027.

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