Saturday, October 18, 2025

Canada Threatens Car Maker from Moving to USA

Why would a car manufacturer want to move from Canada to America?  Maybe because they think it would be better to make cars in a capitalist nation vs. a socialist nation?  Maybe because they realize that they won’t have to pay a tariff if the cars are made in America?  Stellantis wants to invest $13 billion in America to make Jeeps.  Canada wants to stop them from leaving.  

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 “Anything short of fulfilling that commitment will be considered a default under our agreement,” she said. If Stellantis did not live up to its commitment, Canada would “exercise all options, including legal”, she said.

Stellantis announced a $13bn investment in the US on Tuesday, a move that it said would bring five new models to the market. As part of the plan, production of the Jeep Compass will move to the US state of Illinois from a facility in Brampton in the Canadian province of Ontario.

A copy of the letter was made available to the Reuters news agency. The existence of the letter was first reported by Bloomberg.

Stellantis had paused retooling of the Brampton plant in February, shortly after US President Donald Trump announced tariffs against Canadian goods, upending the highly integrated North American auto industry.

In a statement on Tuesday night, Canada’s Prime Minister Mark Carney said Ottawa had made clear it expected Stellantis to fulfil the undertakings it had made to the workers at the plant.

“We are working with the company to develop the right measures to protect Stellantis employees,” he said.

https://www.aljazeera.com/economy/2025/10/15/canada-threatens-stellantis-with-legal-action-over-moving-production-to-us

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