Canada to launch dispute resolution process over Stellantis job move to U.S.
The federal government is taking formal action against Stellantis after the automaker announced it would move production from Ontario to the United States — a move Ottawa says breaches their funding agreement.
Industry Minister Mélanie Joly told a parliamentary committee Monday that Canada will initiate a dispute resolution process to recover taxpayer money and push to restore production in Brampton, Ont.
“Today, before the close of business, the government will take the next step under the contracts to recover Canadian taxpayers’ money,” Joly said.
“This means we will start the 30-day period of the formal dispute resolution process in order to bring back production at the Brampton facility.”
Automaker shifted production to Illinois
In September, Stellantis announced it would cancel plans to build the new Jeep Compass in Brampton, opting instead to move production to Belvidere, Illinois.
The decision came despite billions in combined federal and provincial subsidies already pledged to the automaker — including a $15-billion joint commitment for the NextStar Energy electric vehicle battery plant in Windsor, Ontario.
Joly said the production shift violates the company’s contractual commitments tied to those public investments.
Ottawa seeks accountability for public funds
The dispute resolution process marks the government’s first step toward potentially reclaiming a portion of the billions in taxpayer dollars committed to Stellantis.
Officials say the move underscores Ottawa’s intent to ensure that corporate partners uphold their obligations to Canadian workers and communities.
The government hopes the process will either bring production back to Brampton or secure financial compensation for the breach.
As the dispute unfolds, the focus now turns to how far Ottawa is willing to go to hold one of its largest corporate partners accountable — and what it could mean for the future of Canada’s auto manufacturing sector.
