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Canada threatens Stellantis with legal action over plan to shift output to US
Canada threatens legal action after Stellantis plans to move Jeep Compass production from Brampton, Ontario, breaching a $15 billion auto pact with federal and provincial governments.
- Industry Minister Melanie Joly wrote Wednesday to Stellantis CEO Antonio Filosa expressing `extreme concern` over the planned Jeep Compass shift announced Tuesday as part of a $13 billion U.S. investment.
- Two years ago Stellantis agreed to receive up to $15 billion in performance incentives from the federal and Ontario provincial governments, contingent on meeting the Brampton production mandate amid a 25 per cent tariff on Canadian automotive parts and vehicles.
- The Brampton plant has been idle since 2023 for retooling, and Stellantis says it has plans but provided no details, despite a prior plan to return 3,000 employees this year.
- Ottawa is pressing Stellantis to extend the workers' transition program until at least 2027 and honour Canadian supplier contracts, while Ontario says the Brampton plant did not meet pact conditions.
- The decision follows other automakers' moves to delay or cut Canadian production as tariffs bite and EV adoption lags, weakening Brampton's potential, analysts such as Sam Fiorani say.
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Ottawa threatens to sue Stellantis over move to shift Jeep production to U.S
The Government of Canada is threatening to sue automaker Stellantis NV over its move to shift production of the Jeep Compass to Illinois from Brampton, Ont. Industry Minister Mélanie Joly issued the warning in a letter to Antonio Filosa, chief executive officer of Stellantis, which on Tuesday…
Coverage Details
Total News Sources18
Leaning Left6Leaning Right1Center8Last UpdatedBias Distribution53% Center
Bias Distribution
- 53% of the sources are Center
53% Center
L 40%
C 53%
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