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Canada Gives Stellantis 30 Days To Address Alleged Funding Agreement Breach

Canada claims Stellantis failed to honour its commitments to the government and plant workers

Canada has threatened legal action against automaker Stellantis over its decision to sell an idled assembly plant in Brampton, Ontario, after shifting planned Jeep production to the United States.

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Industry Minister Mélanie Joly said the government had issued a formal notice of default, giving the company 30 days to address alleged violations of its federal funding agreement.

According to CNBC, Canada claims Stellantis failed to honour its commitments to the government and plant workers. Joly said the company could face liabilities worth hundreds of millions of dollars. Prime Minister Mark Carney described the decision as a betrayal of workers.

Stellantis had moved plans to manufacture the Jeep Compass from Brampton to an Illinois facility amid US auto tariffs and market pressures under President Donald Trump.

The company reportedly offered to return $24 million in federal subsidies. It has also agreed to sell the facility to Canadian armoured vehicle manufacturer Roshel and negotiate employee settlements with Unifor.

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