Stellantis introduced a $13bn funding within the US, which is able to see manufacturing of the Jeep Compass transfer to the US from Canada.
Printed On 15 Oct 2025
Canada has threatened authorized motion towards carmaker Stellantis NV over what Ottawa says is the corporate’s unacceptable plan to shift manufacturing of 1 mannequin to a United States plant.
On Wednesday, Minister of Trade Melanie Joly despatched a letter to Stellantis CEO Antonio Filosa noting that the corporate had agreed to take care of its Canadian presence in alternate for substantial monetary assist.
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“Something in need of fulfilling that dedication might be thought-about a default below our settlement,” she mentioned. If Stellantis didn’t dwell as much as its dedication, Canada would “train all choices, together with authorized”, she mentioned.
Stellantis introduced a $13bn funding within the US on Tuesday, a transfer that it mentioned would deliver 5 new fashions to the market. As a part of the plan, manufacturing of the Jeep Compass will transfer to the US state of Illinois from a facility in Brampton within the Canadian province of Ontario.
A replica of the letter was made accessible to the Reuters information company. The existence of the letter was first reported by Bloomberg.
Stellantis had paused retooling of the Brampton plant in February, shortly after US President Donald Trump introduced tariffs towards Canadian items, upending the extremely built-in North American auto business.
In a press release on Tuesday night time, Canada’s Prime Minister Mark Carney mentioned Ottawa had made clear it anticipated Stellantis to fulfil the undertakings it had made to the employees on the plant.
“We’re working with the corporate to develop the fitting measures to guard Stellantis staff,” he mentioned.
Ontario is Canada’s industrial heartland and accounts for about 40 p.c of its nationwide gross home product (GDP).
“I’ve spoken with Stellantis to emphasize my disappointment with their choice,” Ontario Premier Doug Ford mentioned on social media on Wednesday.
Stellantis spokesperson LouAnn Gosselin mentioned the corporate was investing in Canada and famous plans so as to add a 3rd shift to a plant in Windsor, Ontario.
“Canada is essential to us. We now have plans for Brampton and can share them upon additional discussions with the Canadian authorities,” she mentioned in an emailed assertion.
