The Financial Post reports in its Saturday, Dec. 6, edition that the Canadian government announced that Stellantis is in default on its taxpayer-backed aid after moving auto production to a U.S. plant, according to Industry Minister Melanie Joly.
A Bloomberg dispatch to the Post reports that Ms. Joly threatened legal action in October after Stellantis announced it would move Jeep Compass SUV production from Brampton, Ont., to Illinois, investing $13-billion (U.S.) over four years to offset tariff costs.
Governments in Canada pledged more than $500-million to Stellantis to help pay for capital costs.
"Today, on Dec. 4, I'm formally announcing that we're serving Stellantis with a notice of default under the contracts," Ms. Joly said.
Ms. Joly said she is defending Canada's economic backbone and the livelihoods of many families.
The move follows Ms. Joly's announcement of a 30-day dispute resolution process with Stellantis to revive production at the Brampton plant, where about 3,000 unionized workers are currently laid off, along with many others in the region dependent on parts supply.
The company is also partners in a Ssouthern Ontario electric-vehicle battery plant set to receive billions in production subsidies.
© 2026 Canjex Publishing Ltd. All rights reserved.