Cars pass along the assembly line at the Stellantis plant in Brampton, Ont., July, 2023. The automaker's plans to move production of the Jeep Compass to Illinois from Brampton violates funding-for-footprint agreements, Industry Minister Mélanie Joly said in a letter to the company's CEO.

The Canadian government’s threat to sue automaker Stellantis NV over plans to shift production to Illinois from Brampton, Ont., sets the stage for a possible legal battle that will hinge on the fine print of the funding agreements between the two parties, legal and industry experts say.

Industry Minister Mélanie Joly issued the warning on Wednesday in a letter to Stellantis chief executive officer Antonio Filosa, whose company announced a plan to expand U.S. production over four years. Part of that pla

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