The federal government has issued a stern warning to automaker Stellantis, threatening legal action if the company fails to fulfill its commitments to Canadians. This comes years after Stellantis agreed to an auto pact promising substantial performance incentives.
Industry Minister Mélanie Joly expressed deep concern in a letter to Stellantis CEO Antonio Filosa regarding the company’s decision to shift production of its Jeep Compass model from a plant in Brampton, Ont., to one in Belvidere, Ill. The move was part of a $13 billion US investment in the company’s American manufacturing operations, aligning with U.S. President Donald Trump’s push for a robust automotive sector in the country.
In response to the challenging U.S. tariff environment, Minister Joly emphasized that Stellantis had made significant commitments to Canada and its workforce. She warned that failure to honor these commitments would lead to legal repercussions and accountability for the company.
Two years ago, Stellantis entered into an agreement with the federal and Ontario provincial governments, under which they would provide up to $15 billion in performance incentives contingent on the automaker meeting certain conditions, including maintaining production in Brampton. Minister Joly stressed that any deviation from this commitment would be considered a breach of the agreements.
During a press conference, Minister Joly highlighted the ongoing engagement with Stellantis concerning the retooling of the Brampton facility, which has been inactive since 2023. The government’s investments in the plant were based on the expectation that Stellantis would introduce a new model, reinforcing the need for accountability.
The auto pact between Stellantis and the governments was established in 2023, mirroring a similar deal struck with Volkswagen for an EV battery plant in St. Thomas, Ont. Although Ottawa and Ontario pledged significant funding for these projects, the conditions required Stellantis to uphold its commitments in Canada, particularly at the Brampton facility.
Ontario Premier Doug Ford’s office revealed that Stellantis did not meet the auto pact conditions related to project milestones and job creation at the Brampton plant, resulting in the withholding of provincial funding. Premier Ford affirmed that no further financial support would be provided to the company for the Brampton plant.
Stellantis indicated plans for the Brampton facility but did not disclose details when pressed for clarification. The company’s spokesperson declined to comment on the specifics of its agreements with the federal and provincial governments.
