Canada has cautioned Stellantis that it could face legal consequences after the automaker outlined plans to move production of the Jeep Compass from Brampton, Ontario to Illinois as part of a wider US investment.
The company on 14 October announced a $13bn programme in the US to introduce five new models, add a new four-cylinder engine line and create more than 5,000 jobs across plants in Illinois, Ohio, Michigan and Indiana.
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It also aims to lift annual US vehicle output by 50% from current levels and roll out 19 refreshed products across all US assembly facilities with updated powertrains planned through 2029.
In Illinois, Stellantis intends to invest more than $600m to reopen the Belvidere Assembly Plant to expand Jeep Cherokee and Jeep Compass production, with initial output slated for 2027.
In response, Canada’s Industry Minister Mélanie Joly sent a letter to Stellantis chief executive Antonio Filosa stating that the company had previously committed to maintaining its Canadian footprint, including at Brampton, in return for significant public funding.
“I am writing following calls yesterday with the Government of Canada and Stellantis to express my extreme concern with Stellantis’ investment plans in Canada and to demand that the company respect its obligations flowing from billions of dollars of financial support extended to you over decades,” the letter posted on her X (formerly Twitter) account read.
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By GlobalData“While the current US tariff environment is creating complex challenges, Stellantis has made important commitments to Canada and to its workforce. Canadians expect that Stellantis will respect and honour these commitments.”
Joly added: “Anything short of this is unacceptable. Should Stellantis choose not to respect its obligations, we will act in the interests of all Canadians and hold the company to full account, and exercise all options, including legal.
“The business decision to move the mandate of the Jeep Compass is unacceptable. It jeopardises the future of Brampton and its unionised workforce. It is critical that you quickly identify new mandates for Brampton that ensure the facility remains central to your manufacturing footprint, and that contracts with Canadian suppliers be honoured.”
According to Joly, Stellantis agreed with the federal government and the Province of Ontario to maintain its full Canadian presence in exchange for substantial support, and any deviation would be treated as a default under their agreements.
“We are ready and at the table to work with you, all levels of government and union leaders to ensure a positive future for our workers, and all those in the supply chain for parts and other accessories.”
Stellantis builds Ram trucks and Jeep vehicles in the US.
The company said the forthcoming model launches will accompany upgrades across its US manufacturing network through 2029.
