• The Canadian government threatens Stellantis with legal action over plans to move Jeep production to the US.
• Stellantis is investing $13 billion in the US, raising concerns in Canada.
• Canadian officials emphasize the company’s prior commitments to maintain operations in Canada.
• The shift may impact jobs and the industrial economy in Ontario.
• Stellantis plans to create jobs in the US, further complicating the situation for Canadian workers.

Canada has reacted strongly to Stellantis’ decision to relocate production of the Jeep Compass from Ontario to Illinois, threatening legal action against the automaker. Minister of Industry Melanie Joly has indicated that Stellantis had made a "legally binding" commitment to maintain its Canadian operations in exchange for substantial financial support from the Canadian government. “Anything short of fulfilling that commitment will be considered a default under our agreement,” she stated, highlighting Ottawa's resolve to protect its interests, according to Reuters and Al Jazeera.

The decision to move production is part of Stellantis' $13 billion investment plan for the US, which aims to facilitate the introduction of five new models and generate roughly 5,000 jobs in the Midwest. Canada’s Prime Minister Mark Carney has also expressed disappointment, reinforcing the government’s expectations that Stellantis would fulfill its previous commitments made to the workers at the Brampton plant, according to Reuters and BBC.

Ontario, home to the Brampton facility, is critical for Canada's industrial economy, contributing approximately 40% to the national GDP. Ontario Premier Doug Ford voiced his disappointment with the company’s decision, reiterating that the province is a significant part of Stellantis' operations. In her correspondence with Stellantis CEO Antonio Filosa, Joly emphasized the substantial financial support from Canada, stating, “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,” according to Al Jazeera and BBC.

Furthermore, Stellantis had previously paused retooling of the Brampton plant amid rising tariffs on Canadian goods imposed by the US, complicating the North American auto industry's highly integrated operations. According to Stellantis spokesperson LouAnn Gosselin, the company is committed to investments in Canada, indicating potential future plans for the Brampton facility despite the current shift, as reported by Reuters, Al Jazeera, and BBC.