OTTAWA - The Canadian government is launching a dispute resolution process against Stellantis. This action follows the automaker's announcement that it will relocate vehicle production from its Brampton, Ontario, plant to the United States. Industry Minister Mélanie Joly made the announcement during a parliamentary committee meeting on Monday.

Joly stated that the formal process will last 30 days and aims to recover taxpayer money while seeking to restore production at the Brampton facility. She emphasized that Stellantis's decision to move the production of the Jeep Compass to Illinois constitutes a breach of contract. "Today, before the close of business, the government will take the next step under the contracts to recover Canadian taxpayers’ money,” Joly said.

In September, Stellantis revealed plans to abandon its project to manufacture the new Jeep Compass in Brampton, opting instead to shift production to Belvidere, Illinois. This decision has raised concerns in Canada, especially given the significant financial commitments made by both the federal and provincial governments to support Stellantis. The Canadian government has pledged billions in subsidies, including a joint investment of $15 billion for a NextStar electric vehicle battery plant in Windsor.

The dispute resolution process marks a critical step for the Canadian government as it seeks to address the implications of Stellantis's decision on local jobs and the economy. Joly's remarks highlight the government's commitment to holding the automaker accountable for its contractual obligations and ensuring that Canadian taxpayers are not adversely affected by the company's strategic shifts.