The Canadian government has indicated potential legal action against Stellantis following the company’s announcement to relocate Jeep Compass production from Ontario to its plant in Illinois. Stellantis recently detailed a substantial $13 billion investment aimed at boosting its manufacturing capabilities in the United States.
Canada’s Industry Minister, Mélanie Joly, emphasized that Stellantis had a “legally binding” commitment to maintain operations in Brampton, Ontario, in return for financial assistance from the Canadian government. She stated that the government would consider “all options, including legal,” if the company fails to comply with this agreement. Meanwhile, there has been no official comment from Stellantis regarding these developments.
In a communication directed at Stellantis CEO Antonio Filosa, Joly noted that Canada had provided significant financial support to the company, stating that the production shift could jeopardize the future of the Brampton facility. Filosa described the recent investment as the largest in the company’s history, indicating it would foster growth and job creation within the U.S., although he did not reference the Canadian operations.
Joly acknowledged the historical partnership between Stellantis and the Canadian government, recalling the support provided to the company during its bankruptcy crisis in 2009. The Canadian Prime Minister, Mark Carney, mentioned that efforts are underway to safeguard jobs at the Brampton site and to explore opportunities for local employment.
Stellantis operates 14 automotive brands globally, with manufacturing facilities not only in the U.S. but also in the UK, Europe, Canada, Mexico, and South America. The company previously reported financial losses attributed to tariffs imposed by the Trump administration.
Currently, a new 10% tariff on softwood lumber has been implemented, affecting Canadian imports significantly, with many facing over 45% in tariffs due to an ongoing trade dispute between Canada and the U.S.
Source: https://www.bbc.com/news/articles/cn97xx7d3r1o?at_medium=RSS&at_campaign=rss