Stellantis announced a $13 billion investment in the United States, which will move production of the Jeep Compass from Canada to the United States.
Published October 15, 2025
Canada is threatening legal action against automaker Stellantis NV over what Ottawa says is the company’s unacceptable plan to shift production of one model to a U.S. factory.
On Wednesday, Industry Minister Mélanie Joly sent a letter to Stellantis CEO Antonio Filosa saying Stellantis has agreed to maintain a presence in Canada in exchange for significant financial support.
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“Failure to fulfill that promise will be considered a default under the agreement,” she said. If Stellantis does not fulfill its commitments, Canada will “exercise all options, including legal options,” she said.
Stellantis on Tuesday announced a $13 billion investment in the U.S. that will bring five new models to market. As part of the plan, production of the Jeep Compass will be moved from a facility in Brampton, Ontario, Canada, to Illinois, USA.
A copy of the letter was released to Reuters. The existence of the letter was first reported by Bloomberg.
Stellantis had suspended upgrades at its Brampton factory in February, shortly after U.S. President Donald Trump announced tariffs on Canadian products, disrupting North America’s highly consolidated auto industry.
Canadian Prime Minister Mark Carney said in a statement Tuesday night that Ottawa has made clear it expects Stellantis to fulfill the promises it made to workers at the plant.
“We are working with the company to develop appropriate measures to protect Stellantis employees,” he said.
Ontario is Canada’s industrial center, accounting for approximately 40% of the country’s gross domestic product (GDP).
“I have spoken with Stellantis and emphasized my disappointment with their decision,” Ontario Premier Doug Ford said on social media Wednesday.
Stellantis spokeswoman Louanne Gosselin said the company is investing in Canada, noting plans to add a third shift at its Windsor, Ont., plant.
“Canada is very important to us. We have a plan for Brampton and will share it in further discussions with the Canadian government,” she said in an emailed statement.
