Title: Canada Considers Legal Action Against Stellantis Over Production Shift

TORONTO — The Canadian government is contemplating legal action against Stellantis NV after the automaker announced it would relocate production of the Jeep Compass SUV from its Brampton, Ontario, plant to Illinois. Industry Minister Melanie Joly expressed her strong disapproval of this decision in a letter to Stellantis CEO Antonio Filosa, stating that the move is "unacceptable" and could put the company in default of its commitments to maintain its Canadian operations.

Joly highlighted that Stellantis had previously agreed to uphold its Canadian footprint, including the Brampton facility, in exchange for significant government support during the financial crisis in 2009. "We were there for the company in 2009 to pull it back from the brink of bankruptcy, and now we expect you to be there for Canadians," she wrote.

The federal and Ontario governments have provided ongoing financial assistance to help automakers retool their assembly plants in southern Ontario, which are closely integrated with parts suppliers in both Canada and the U.S. Joly emphasized the need for Stellantis to develop new mandates for the Brampton factory and to honor its contracts with Canadian suppliers.

In response to the announcement, Stellantis confirmed it has plans for the Brampton plant but did not disclose specific details. The company is also reinstating a third shift at its Windsor, Ontario, plant to meet increased demand for the Chrysler Pacifica and Dodge Charger.

The decision to shift production comes as Stellantis commits to a $13 billion investment in the U.S. over the next four years, aimed at increasing vehicle production by 50%. This investment is seen as a response to tariffs imposed by the Trump administration on foreign automobiles, which affect Canadian and Mexican vehicles despite the US-Mexico-Canada Agreement.

Joly's letter also urged Stellantis to extend the workers' transition program, which was agreed upon with the Unifor union, until at least 2027. This program is crucial for the approximately 3,000 workers at the Brampton plant who are now left uncertain about their future.

Ontario Premier Doug Ford expressed his disappointment with Stellantis's decision and stated that the company would not receive any further funding until it fulfills its obligations. He noted that the company had assured him it would keep the Brampton plant operational, although the reopening would be delayed as they determine which vehicles to produce there.

The situation has raised concerns among industry experts and labor leaders. Greig Mordue, an associate professor at McMaster University, remarked that the outlook for the Brampton plant is increasingly bleak, and the need for Canada to seek new partnerships beyond U.S. automakers is urgent.

Unifor national president Lana Payne called on the federal government to defend the Brampton plant and the broader auto sector against the impacts of tariffs. She stated, "Stellantis cannot be allowed to renege on its commitments to Canadian workers, and governments cannot stand by while our jobs are shifted to the United States."

The ongoing developments highlight the fragility of the North American auto industry, which is facing challenges from tariffs and shifting production strategies. As the situation evolves, the Canadian government remains committed to holding Stellantis accountable for its commitments to Canadian workers and the auto sector.