The federal government has issued Stellantis a notice of default after the automaker shifted planned vehicle production out of Ontario and into the United States, Industry Minister Mélanie Joly told MPs on Thursday.
Stellantis announced in October that manufacturing of its Jeep Compass, originally slated for Brampton, Ont., would instead be moved to Illinois. Joly told the House of Commons standing committee on international trade that the move violates federal contracts tied to Stellantis operations in both Brampton and Windsor.
She said the federal funding agreement supporting the company’s Windsor battery plant included a job guarantee for Brampton workers, making the production shift a breach of that commitment.
Ottawa launched a formal dispute resolution process against Stellantis last month in response to the decision, which came amid broader upheaval in the North American auto sector following U.S. President Donald Trump’s recent tariffs affecting the industry.
The government has not yet detailed the potential consequences of the notice of default, but Joly’s comments signal that Canada is prepared to enforce job-related conditions attached to major public investments.