Ottawa Threatens to Sue Stellantis in Wake of $13B U.S. Investment
The Canadian government has warned Stellantis that it could take the automaker to court if it reneges on previously announced investments in Canada.
The Minister of Industry and Economic Development, Mélanie Joly, has written a letter to the CEO of Stellantis, Antonio Filosa, to express her concerns following the Italian-French-American auto group's $13 billion investment in the U.S.
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In particular, the next-generation Jeep Compass will be built in Belvidere, Illinois rather than Brampton, Ontario as previously planned.
Joly pointed out that the company has benefited from significant subsidies from Ottawa in recent years, all of which were tied to a commitment by Stellantis to invest in Canada.
“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,” she wrote.
“The business decision to move the mandate of the Jeep Compass is unacceptable. It jeopardizes the future of Brampton and its unionized 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.”
Ontario Premier Doug Ford also denounced the $13 billion investment by Stellantis.
He then called on Prime Minister Mark Carney to negotiate more firmly with U.S. President Donald Trump's administration in order to end the uncertainty surrounding the automotive sector and prevent other car manufacturers from following Stellantis' lead.