The Canadian government told Stellantis NV it’s in default on its taxpayer-backed financial aid after it moved auto production to a U.S. plant, Industry Minister Melanie Joly said.

Joly first threatened to take legal action in October, shortly after Stellantis announced it was canceling plans to make the Jeep Compass SUV in Brampton, Ontario, and moving that vehicle to Illinois. The automaker said it would invest $13 billion in the United States over four years, partly to mitigate tariff costs.

Governments in Canada pledged more than C$500 million ($358 million) to Stellantis to help pay for capital costs in its two assembly plants in the country.

“Today, on Dec. 4, I’m formally announcing that we’re serving Stellantis with a notice of default under the contracts,” Joly told a parliamen

See Full Page