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Briefing

Feds served Stellantis with ‘notice of default’ over moving production to U.S.

Briefing

Feds served Stellantis with ‘notice of default’ over moving production to U.S.

By Joanna Smith
Dec 5, 2025
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Industry Minister Mélanie Joly said Thursday the global auto giant’s decision to make the Jeep Compass in Illinois instead of Brampton breaches a funding contract linked to jobs in Ontario. (The Logic)

Talking point: In 2022, Ottawa agreed to give up to $529 million to NextStar Energy, a joint venture between Chrysler parent company Stellantis and LG Energy Solution, to retool plants in Brampton and Windsor, where it would also set up a battery facility. A redacted version of the contract says it would “create and maintain” 2,500 jobs. In 2023, the federal and provincial governments promised NextStar up to $15 billion in subsidies on the condition it uphold its “production mandate” in Brampton. “What was clear in that contract is that the investments in the battery plants… were linked to the Brampton facility,” Joly told the Commons trade committee. Stellantis executive Teresa Piruzza told MPs Thursday the Brampton factory was on an “operational pause” and said the company will honour its agreements.

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