Canada has begun dispute settlement proceedings against Stellantis, citing the automaker’s decision to move Jeep Compass production from the Brampton, Ontario plant to a facility in Illinois. The move was announced by Stellantis in October 2025 and was made public on November 3, 2025.
The Canadian government argues that the shift violates conditions attached to federal and provincial funding that was awarded to modernize the Brampton and Windsor plants for electric‑vehicle production. In 2022, Ottawa committed more than C$1 billion (about US$710 million) to the Brampton plant, with the stipulation that Stellantis maintain production and employment there. The Windsor facility received additional incentives, and the funding was contingent on continued operations at Brampton.
Stellantis said the decision was driven by the need for trade certainty and to avoid potential U.S. tariffs on imported vehicles. The company noted that the U.S. has imposed tariffs on foreign‑made cars and that its $13 billion investment in the U.S. is part of a broader strategy to secure a stable supply chain.
Canada’s dispute could lead to the imposition of tariffs on Stellantis vehicles imported from the United States. The government has already reduced Stellantis’s tariff‑free import quota by 50% and is seeking to enforce the funding conditions through the dispute settlement process.
Stellantis has indicated that it remains committed to Canada and that it will share plans for the Brampton plant after further discussions with the government. The company’s president, Jeff Hines, said the decision was not taken lightly and that the automaker is looking for a stable environment to make long‑term investment decisions.
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