🇨🇦 BREAKING: Ottawa Threatens to Sue Stellantis Over Jeep Production Move to U.S.

The federal government is warning multinational automaker Stellantis that legal action may follow after reports surfaced about the company’s plan to shift Jeep production from Ontario to the United States.

Industry Minister Mélanie Joly stated that Stellantis had made legally binding commitments to sustain its manufacturing footprint in Canada, particularly within Ontario’s auto sector, and any deviation from those commitments could trigger government intervention.

“We will not allow companies to walk away from promises made to Canadian workers and communities,” Joly said in a press conference. “Our government expects Stellantis to honour its obligations under the agreement it signed.”

The dispute erupted after reports suggested Stellantis was considering relocating Jeep production lines south of the border, citing market pressures and U.S. incentives under President Trump’s new tariff and manufacturing policies. The move has drawn sharp criticism from Canadian officials and unions, who fear potential job losses and economic fallout in Ontario’s auto industry — a vital part of Canada’s manufacturing base.

Government sources confirmed that Ottawa is reviewing all available legal and contractual options to ensure Stellantis upholds its commitments. The company, which operates key facilities in Windsor and Brampton, had previously received significant government support as part of Canada’s electric vehicle and green manufacturing push.

The situation highlights growing trade friction between Canada and the United States amid renewed tariff measures and shifting industrial priorities. Economists warn that escalating tensions could disrupt North American supply chains and undermine cross-border manufacturing stability.

Stellantis has not yet issued an official response to the government’s legal warning but has maintained that it is “reviewing operational strategies” to remain competitive.

For now, the federal government insists that Canadian jobs and industrial sovereignty must come first — setting the stage for what could become a landmark confrontation between Ottawa and one of the world’s largest automakers.

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