Canada has initiated a dispute resolution process against Stellantis following the automaker’s announcement last month about relocating jobs to the United States. Industry Minister Mélanie Joly informed a parliamentary committee that Ottawa aims to recoup some of the tax dollars it has invested in Stellantis. Joly stated that Stellantis moving production of the Jeep Compass from Brampton, Ontario, to Illinois breaches a contract.
“We will commence the 30-day period of the formal dispute resolution process today to bring back production at the Brampton facility,” Joly emphasized.
In a previous statement, the company disclosed its decision to shift production of the new Jeep Compass from Brampton to Belvidere, Illinois. The Canadian government, along with the province, has provided substantial subsidies to Stellantis under various contracts, including a joint commitment of $15 billion to facilitate Stellantis partnering with NextStar/LG for a new electric vehicle (EV) battery plant in Windsor.
Stephanie Tanton, assistant deputy minister of Innovation Canada, mentioned that the retooling contract details are confidential and currently being worked on for disclosure.
Stellantis reiterated that the Brampton plant is currently paused, not closed, with no job losses. The company assured that supportive measures are in place to mitigate the impact of the decision and is exploring transfer opportunities at other Stellantis facilities. Stellantis spokesperson LouAnn Gosselin highlighted ongoing collaboration with government stakeholders to devise sustainable solutions for automotive manufacturing in Canada.
During the committee session, questions arose about job assurances within the contracts. Joly affirmed the interconnected nature of the contracts with built-in guarantees and clarified that the full commitment for the new Windsor plant has not been exhausted.
Raquel Dancho, Conservative MP for Kildonan—St. Paul in Manitoba, criticized the government for lack of transparency regarding the contracts.
Joly emphasized unity among all parties involved in the process, underscoring the common goal of reinstating production in Brampton and acknowledging the significance of safeguarding every job in the sector.