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Canada Warns Stellantis of Legal Action Over Jeep Production Shift
The Canadian government has issued a stern warning to automaker Stellantis NV after the company announced plans to move production of its Jeep Compass SUV from Brampton, Ontario, to Belvidere, Illinois.
Industry Minister Mélanie Joly sent a letter to Stellantis CEO Antonio Filosa, stressing that the move violates commitments the company made in exchange for billions in government incentives. Ottawa had provided substantial financial support to ensure Stellantis maintained a strong manufacturing presence in Canada.
“Anything short of fulfilling that commitment will be considered a default under our agreement,” Joly wrote, adding that Canada is prepared to “exercise all options, including legal” if Stellantis proceeds with the shift.
The automaker recently unveiled a $13 billion U.S. investment plan, which includes five new models and expanded production south of the border. The decision has sparked concerns over job losses in Brampton and the future of Canada’s auto sector, which has been under pressure from new U.S. tariffs on Canadian-made vehicles and parts.
Negotiations between Ottawa and Stellantis are ongoing, but the dispute highlights the growing strain in North American auto manufacturing as companies balance government incentives, tariffs, and global competition.
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