Canada is not pleased with automaker Stellantis. Canada has threatened legal action against carmaker Stellantis NV over what Ottawa says is the company’s unacceptable plan to shift production of one model to a United States plant.
Stellantis is a global automotive giant formed in 2021 from the merger of Fiat Chrysler Automobiles and PSA Group. As the world’s fourth-largest automaker by volume, Stellantis owns well-known brands including Jeep, Ram, Dodge, Peugeot, and Citroën. The company operates across North America, Europe, and other key markets, offering a broad lineup from passenger cars to trucks and commercial vehicles.
On Wednesday, Minister of Industry Melanie Joly sent a letter to Stellantis CEO Antonio Filosa noting that the company had agreed to maintain its Canadian presence in exchange for substantial financial support.
“Anything short of fulfilling that commitment will be considered a default under our agreement,” she said. If Stellantis did not live up to its commitment, Canada would “exercise all options, including legal,” she said.
In 2025, Stellantis is heavily focused on electrification and innovation, investing billions to develop electric vehicles and battery technologies. It aims to lead in sustainable mobility by launching new electric platforms and expanding hybrid and fully electric models. Stellantis is also adapting to global market challenges, including supply chain disruptions and changing consumer preferences.
Stellantis announced a $13 billion investment in the U.S. on Tuesday, a move that it said would bring five new models to the market, and as part of the plan, production of the Jeep Compass will move to the U.S. state of Illinois from a facility in Brampton in the Canadian province of Ontario.
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For Canada, the controversy highlights the challenges of securing long-term commitments from global firms in a highly competitive and shifting auto landscape. As nations compete to attract EV investments, Canada is asserting its expectation that public funding must translate into stable, local jobs. The resolution of this issue could shape future investment policies and serve as a test case for how countries balance industrial support with accountability from private-sector partners.
“I have spoken with Stellantis to stress my disappointment with their decision,” Ontario Premier Doug Ford said in a social media post.
For Stellantis, this situation presents both opportunity and risk. On one hand, the company is strategically positioning itself to expand U.S. operations and meet growing demand for electric and hybrid vehicles. On the other hand, it risks damaging long-standing relationships with Canadian authorities and labor forces, which could complicate future investments and operations in the country.
Stellantis spokesperson LouAnn Gosselin said the company was investing in Canada and noted plans to add a third shift to a plant in Windsor, Ontario.
“Canada is very important to us. We have plans for Brampton and will share them upon further discussions with the Canadian government,” she said in an emailed statement.
This situation also reflects the increasing geopolitical and economic pressure on automakers to localize production amid rising protectionism and trade tensions. As countries like the U.S. and Canada compete for electric vehicle manufacturing and related supply chains, companies such as Stellantis must navigate not only market forces but also evolving government expectations tied to subsidies and job creation.
For Stellantis, balancing cost-efficiency with political goodwill will be critical in preserving access to incentives and avoiding reputational fallout. For Canada, the dispute reinforces the urgency of creating more binding industrial agreements that ensure long-term economic returns on public investment.