OTTAWA — The Canadian government is launching a formal dispute with Stellantis over the carmaker’s decision to move thousands of jobs to the United States.
“If you create good jobs here, our government will be your strongest partner,” Industry Minister Mélanie Joly said Monday. “But if you make promises and then walk away, you will be held accountable.”
Joly advised a parliamentary committee that the government is initiating a 30-day dispute-resolution process with the multinational carmaker after 3,000 workers were laid off from its plant in Brampton, Ontario. The facility announced plans last month to move its Jeep Compass production to Illinois — making it Canada’s first plantwide casualty in President Donald Trump’s trade war.
Stellantis signed three contracts with Ottawa and the Ontario government two years ago for up to C$15 billion in support, conditioned on production and job guarantees. Ottawa claims that shifting production to the U.S. breaches those provisions.