Industry Minister Mélanie Joly says the federal government has formally issued a notice of default to Stellantis after the automaker shifted part of its planned Canadian production to the United States. Speaking before the standing committee on international trade, Joly said Stellantis violated federal agreements by moving manufacturing of the Jeep Compass from Brampton, Ontario, to Illinois, a decision announced in October.
According to Joly, the contracts supporting federal funding for Stellantis projects in Brampton and Windsor included explicit job guarantees tied to local production. She noted that funding for the Windsor battery plant came with conditions meant to protect Brampton employment, and the automaker’s decision breaches those commitments. Ottawa launched a dispute resolution process against Stellantis last month.
The automaker’s production shift followed U.S. President Donald Trump’s tariff actions, which have disrupted North America’s automotive landscape and pressured companies to reconsider supply chains and manufacturing locations. The federal government says it intends to hold Stellantis accountable for meeting obligations set out in its funding agreements.
