The Canadian government is threatening legal action against automaker Stellantis, after the company announced plans to shift production of its Jeep Compass model out of Brampton, Ontario and into the U.S.

In an October 15 letter to Stellantis CEO Antonio Filosa, Canadian Industry Minister Mélanie Joly labeled the planned move "unacceptable," and called on the company to "respect its obligations flowing from billion of dollars of financial support extended to you over decades," which included Canadian federal loans issued in 2009 that helped save Stellantis from bankruptcy.

"Should Stellantis choose not to respect its obligations, we will act in the interests of Canadians, and hold the company to full account, and exercise all options," Joly said.

Brampton Mayor Patrick Brown was similarly critical in a statement issued to CBC, calling the move a "punch to the gut" for a community that relies heavily on auto manufacturing, especially after the provincial government of Ontario invested $132 million in 2022 to upgrade the Brampton plant to produce electric vehicles. Stellantis also signed an agreement with federal and provincial governments that same year to provide the company with $15 billion in performance-based incentives if the Brampton factory fulfilled certain production and job creation mandates. A spokesperson for Ontario Premier Doug Ford told CBC that none of those incentives have been paid out to Stellantis  yet, as the company has yet to meet the requisite targets outlined in the 2022 deal.  

The plan to move Jeep Compass production out of Ontario was announced on October 14, as part of a larger $13 billion investment Stellantis has committed to make in U.S. manufacturing over the next four years. In July, the carmaker estimated that tariffs from the Trump administration had already cost it nearly $350 million.