Canada has initiated a formal dispute-resolution process against Stellantis following the automaker’s decision to relocate planned Jeep Compass production from its Brampton, Ontario, plant to Illinois.

Industry Minister Mélanie Joly, as reported by The Globe and Mail, said she notified Stellantis on 3 October that Ottawa will seek repayment of federal support unless the company commits to building another vehicle at the Brampton facility, northwest of Toronto.

The government argues the move violates funding agreements covering Brampton and two other Ontario sites.

Speaking to MPs on the House of Commons industry and technology committee, Joly said: “Stellantis made a commitment – a promise – to invest in that plant, to invest in Canadian workers. And our government expects them to honour that promise. Full stop.”

Last month, Stellantis, parent to brands including Chrysler, Fiat, and Jeep, announced a $13bn investment plan.

The capex aims to expand its presence in its “critical” US market and grow domestic manufacturing.

The Brampton plant has been idle for nearly two years for retooling tied to the Compass, with about 3,000 workers laid off.

Officials told the committee that the company disclosed the production shift to the government on the same day it unveiled the US expansion.

As per the report, Ottawa’s funding agreements with Stellantis cover three Ontario projects: assembly plants in Brampton and Windsor, and the NextStar battery factory in Windsor, a joint venture with LG Energy.

The contracts are confidential and are understood to include job commitments linked across the three sites.

The government has repeatedly declined to release the agreements or detailed terms, and Stellantis has also refused to share contract specifics.

Stellantis said it has plans for Brampton but did not provide details.

LouAnn Gosselin, a company representative, said the facility remains on an “operational pause”.

“We continue to work constructively with government partners and other stakeholders on a plan for Brampton to find viable solutions that build a sustainable, long-term future for automotive manufacturing in Canada,” Gosselin was quoted by the publication as saying in an email.

Meanwhile, Joly said Ottawa will proceed with steps to recoup public funds.

In October, Canada also sharply cut tariff-free import quotas for General Motors and Stellantis, citing reductions in their domestic manufacturing.