After European carmaker Stellantis moved production to the United States, the Canadian government issued a notice of breach of contract for the $500 million CAD aid agreement.
Canadian Minister of Industry Melanie Joly officially issued a breach of contract notice to automotive manufacturer Stellantis NV on December 4th. The company had previously canceled plans to produce the Jeep Compass SUV at its Brampton plant in Ontario and shifted production to one of its factories in the United States. The Canadian government had promised Stellantis over 500 million Canadian dollars in funding for capital expenditures at its Canadian plants. Stellantis confirmed that it is currently engaged in confidential dispute resolution proceedings with the Canadian government to ensure the future of the Canadian automotive manufacturing industry, while approximately 3,000 union workers at the Brampton plant are now unemployed due to the production shift.
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