Ottawa Demands Stellantis Bring Auto Production Back to Canada

The federal government of Canada has launched a formal dispute process with automaker Stellantis over the company’s decision to move planned vehicle production from Brampton, Ontario, to the United States. Industry Minister Mélanie Joly announced the move during a parliamentary committee session.

Joly said Ottawa has sent the company a letter initiating a 30-day dispute resolution process, aiming to bring production back to Canada and recover taxpayer funds.
“This is not a symbolic move,” Joly stressed. “It is the direct consequence of violating clear contractual commitments.”

Stellantis had earlier announced that production of the Jeep Compass would shift from Brampton to Illinois — a move the federal government considers a breach of agreements tied to manufacturing in Brampton and Windsor.

Around 3,000 workers at the Brampton plant remain on furlough since February, when facility upgrades were halted.

Joly said she is working closely with the Unifor union and Ontario’s Economic Development Minister Vic Fedeli.
“The auto industry is the backbone of Ontario’s economy. Fighting for these jobs means fighting for Canada’s future,” she said.

Stellantis, together with LG Energy Solution, is also involved in the NextStar Energy project to build a $15-billion battery plant, partially funded by the federal government.