The Canadian government is preparing to declare Stellantis in default of its funding agreements after it moved some production to the US despite receiving significant public subsidies.
Industry Minister Mélanie Joly told the House of Commons international trade committee that the government will issue Stellantis with a notice of default tied to federal support for projects in Windsor and Brampton, Ontario to a plant in Illinois.
Canada warned Stellantis in October that the move could trigger legal consequences under agreements tied to taxpayer-backed support.
In October, Stellantis unveiled a US investment package valued at $13bn aimed at introducing five new models, adding a new four‑cylinder engine line and creating more than 5,000 jobs across facilities in Illinois, Ohio, Michigan and Indiana.
The group is targeting a 50% increase in annual US vehicle production compared with current capacity and intends to refresh 19 products at all its US assembly plants, with powertrain upgrades scheduled through to 2029.
As part of the plan, Stellantis has proposed investing more than $600m in Illinois to restart the Belvidere Assembly Plant.
The site is expected to expand output of Jeep Cherokee and Jeep Compass models, with production currently forecast to begin in 2027.
Joly wrote to Stellantis CEO Antonio Filosa stating that the automaker had previously pledged to retain its manufacturing footprint in Canada - including operations at Brampton - in return for major financial support.
According to Joly, the company’s commitments covered maintaining its full Canadian presence in exchange for substantial public backing.
Around 3,000 workers linked to the Brampton plant are on layoff.
Joly said: "We’ll stand firm for the sake of our workers, our industries and our nation because defending these jobs means defending Canada’s economic backbone.”
Stellantis Canada external affairs director Teresa Piruzza characterised the change at Brampton as “an operational pause”.
Stellantis continues to have operations at its Windsor facility, where it plans to add about 1,500 workers next year.
