Ottawa Begins Dispute Settlement Proceedings Against Stellantis for Moving Production to US

Industry Minister Mélanie Joly says Canada is launching dispute settlement proceedings against Stellantis due to the automobile manufacturer’s decision to transfer production from an Ontario plant to a facility in the United States.

“These actions are not symbolic,” Joly told the industry and technology committee on Nov. 3. “They’re the direct consequence of the violation of clear commitments … when a commitment toward the Canadian government is not respected on behalf of Canadian workers, there are consequences.”

Joly said the formal dispute resolution process will last 30 days and aims to bring back vehicle production to the Stellantis factory in Brampton, Ont.

Stellantis announced on Oct. 14 that its production of the Jeep Compass, which was previously slated for the Brampton Assembly Plant in Ontario, would move to Illinois, impacting approximately 3,000 jobs in Brampton. Stellantis said the move was being made as part of a $13 billion investment over the next four years to expand its manufacturing capacity in the United States.

The Brampton factory had been shut down since 2024 as the company retooled to build the next generation of the Jeep Compass, but that work was paused in February after U.S. tariffs were announced. 

Joly sent a letter to Stellantis CEO Antonio Filosa last month stating that “the company’s actions were unacceptable” and insisted the firm honour its legally binding commitments made to the Canadian government.

Ottawa also announced on Oct. 23 a 50 percent reduction in the company’s annual remission quota, meaning it can no longer import as many vehicles into Canada tariff-free. The Canadian government imposed retaliatory tariffs on some U.S. goods in April, but carved out exemptions for some automakers to bring specific numbers of vehicles into Canada.

“What is happening to the Stellantis workers in Brampton is a fight worth fighting for,” Joly told the committee on Nov. 3. “It is bigger than one company or one city. It is about fairness, accountability, and solidarity. It’s about keeping promises.”

Conservative MP Raquel Dancho asked Joly what promise Stellantis had broken in its agreement with Ottawa. Confidential deals were signed to help fund an electric vehicle plant in Windsor backed by Stellantis, which included Ottawa’s pledge of up to $10 billion in production subsidies, while the Ontario government pledged $5 billion.

Joly responded that the committee, which is studying the state of Canada’s auto industry, will be able to access and look over the three different contracts. Joly said the contracts contained job guarantees, but did not say if they specifically included the Brampton factory.

Joly also told the committee that the governments have not yet spent the $15 billion for Stellantis, because the company is still hiring for the facility and there has not yet been any production or sales of electric vehicle batteries.

Stellantis President Jeff Hines previously told the committee on Oct. 29 that the decision to move production to the United States was “not taken lightly.” He said Stellantis is looking to find a solution to provide the laid-off workers in Brampton with a “long-term, sustainable operation.”

Stellantis did not immediately respond to The Epoch Times’ request for comment about Ottawa launching the formal dispute resolution process.