Canada has formally issued a notice of default to Stellantis after the automaker decided to shift planned Jeep Compass production from Brampton, Ont., to Illinois — a move the federal government says violates funding agreements tied to Canadian job commitments. Industry Minister Mélanie Joly told MPs the production shift breaches contracts connected to federal support for both the Brampton assembly plant and the NextStar battery plant in Windsor, which received nearly $500 million in federal funding.

Joly said the government must “stand firm” to prevent a broader exodus of auto manufacturing, especially as U.S. President Donald Trump’s tariffs and rhetoric have pressured companies to relocate south. Approximately 3,000 Brampton workers remain furloughed as facility upgrades have been paused, heightening concerns for Ontario’s auto workforce.

The dispute reflects a critical moment for Canada’s industrial job market: federal and provincial governments have invested billions to anchor EV manufacturing, yet global automakers are increasingly drawn to aggressive U.S. incentives. Any erosion of Canadian auto production risks deeper job losses in one of the country’s most important sectors, underscoring the high stakes of enforcing domestic-job guarantees in subsidy agreements.

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Kelly Geraldine Malone’s original article, “Joly says Canada serving Stellantis a notice of default after automaker shifted production to U.S.” was published in CTV News on December 4, 2025. Read the Full CTV News story.

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