Stellantis faces a fierce backlash in Canada after canceling Compass production, with officials threatening legal action and demanding accountability
Stellantis canceled plans to build the next Jeep Compass at its Brampton plant. Ontario’s Premier says another model will replace the canceled Compass project. Brampton’s mayor accused Stellantis of being pressured by the US administration.
Canada isn’t taking kindly to Stellantis’s decision to scrap plans for building the next-generation Jeep Compass at its Brampton plant in Ontario, opting instead to shift production to Illinois. The move has rattled political and industry circles alike, setting up what could become a tense showdown over promises and public investment. In fact, Canadian industry minister Melanie Joly has indicated the car manufacturer could be sued for this change of plans, paving the way for what could turn out to be a bitter dispute between Canada and one of the world’s largest car manufacturers. Change of Plans The writing has been on the wall for quite some time. In February, Stellantis said it was halting plans in Canada to build the new Compass there, despite initially promising to start production at the Brampton site in February 2026. Earlier this week, Stellantis revealed the model would be built in Illinois instead, as part of a $600 million investment to reopen that site, promising to create 3,300 new jobs by 2027. Read: Stellantis Spends $13 Billion To Revive Jeep And Dodge In America In response to the news, Joly said she would consider Stellantis to be in “default” due to the previous government support provided to it. She added the move was “unacceptable” and urged Stellantis to come up with “new mandates” for the facility. “We were there for the company in 2009 to pull it back from the brink of bankruptcy, and now we expect you to be there for Canadians,” she added, reports Bloomberg. Stellantis hasn’t publicly replied to Joly’s comments, but Ontario Premier Doug Ford said he has already spoken with the company’s leadership, who reassured him that a different vehicle will be assembled at Brampton instead. What's Next for Brampton? “I had a conversation with the president of Stellantis yesterday,” Ford said. “He said, well, they are going to postpone it for a year. They are going to find a new model. “I want to keep the Brampton plant open, no matter what. He’s given me his word, and they are going to keep it open. They are going to see what products they are going to put in there.” Stellantis added in a separate statement to CTV News that it has “plans for Brampton and will share them upon further discussions with the Canadian government.” Brampton Mayor Patrick Brown suggested that Stellantis was “being bullied by the Trump administration” in making the new US investments. “Provincial and Canadian governments have put a lot of money into this company,” he noted. “There was a flashy announcement a few years back in Windsor where they put billions into this company for the purpose of jobs in Ontario… and I hope that the lawyers for the Government of Canada are looking at every cent that has been spent in this company to say, ‘We want it back if obligations are not upheld.’” Sources: CTV News, Bloomberg
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