Canada is starting a dispute resolution process against Stellantis after the automaker said last month that it’s moving jobs to the U.S.
Industry Minister Mélanie Joly told a parliamentary committee Monday that Ottawa wants to recover some of the billions it has committed to Stellantis.
Joly said Stellantis moving production of the Jeep Compass from Brampton, Ont., to Illinois is a violation of a contract.
“Today, before the close of business, the government will take the next step under the contracts to recover Canadian taxpayers’ money,” Joly said.
“This means that we will start the 30-day period of the formal dispute resolution process in order to bring back production at the Brampton facility. This is the start of the dispute resolution process.”
In September, the company said it was scrapping plans to build the new Jeep Compass in Brampton, instead moving production to Belvidere, Ill.
The Canadian government, along with the province, has pledged billions in subsidies for the automaker, including a joint commitment of $15 billion for a NextStar electric vehicle battery plant in Windsor.
More to come
