Canada threatens Stellantis with legal action over moving production to US

Stellantis announced a $13bn concern successful the US, which volition spot accumulation of the Jeep Compass determination to the US from Canada.

Canada has threatened ineligible enactment against carmaker Stellantis NV implicit what Ottawa says is the company’s unacceptable program to displacement accumulation of 1 exemplary to a United States plant.

On Wednesday, Minister of Industry Melanie Joly sent a missive to Stellantis CEO Antonio Filosa noting that the institution had agreed to support its Canadian beingness successful speech for important fiscal support.

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“Anything abbreviated of fulfilling that committedness volition beryllium considered a default nether our agreement,” she said. If Stellantis did not unrecorded up to its commitment, Canada would “exercise each options, including legal”, she said.

Stellantis announced a $13bn concern successful the US connected Tuesday, a determination that it said would bring 5 caller models to the market. As portion of the plan, accumulation of the Jeep Compass volition determination to the US authorities of Illinois from a installation successful Brampton successful the Canadian state of Ontario.

A transcript of the missive was made disposable to the Reuters quality agency. The beingness of the missive was archetypal reported by Bloomberg.

Stellantis had paused retooling of the Brampton works successful February, soon aft US President Donald Trump announced tariffs against Canadian goods, upending the highly integrated North American car industry.

In a connection connected Tuesday night, Canada’s Prime Minister Mark Carney said Ottawa had made wide it expected Stellantis to fulfil the undertakings it had made to the workers astatine the plant.

“We are moving with the institution to make the close measures to support Stellantis employees,” helium said.

Ontario is Canada’s concern heartland and accounts for astir 40 percent of its nationalist gross home merchandise (GDP).

“I person spoken with Stellantis to accent my disappointment with their decision,” Ontario Premier Doug Ford said connected societal media connected Wednesday.

Stellantis spokesperson LouAnn Gosselin said the institution was investing successful Canada and noted plans to adhd a 3rd displacement to a works successful Windsor, Ontario.

“Canada is precise important to us. We person plans for Brampton and volition stock them upon further discussions with the Canadian government,” she said successful an emailed statement.