Canadian auto workers caught in trade war as Jeep moves cars to Illinois
Stellantis announced a $13 billion investment in the United States, and the company is now moving production out of Canada and reopening a factory in Illinois.
- Stellantis recently changed course on its previous commitment to build the Jeep Compass in Brampton, Ontario.
- Instead, Stellantis announced it would build the vehicles in Illinois.
- Canadian lawmakers are currently preparing to file a “notice of default” against Stellantis, which is essentially a breach of contract warning that usually leads to litigation.
Canada’s federal government is escalating an ongoing dispute with Stellantis over broken promises to manufacture Jeep vehicles domestically.
In October, Stellantis announced major investments in its U.S. manufacturing footprint as a way to avoid the brunt of President Donald Trump’s 25% tariff on imported cars. The investment would have resulted in several vehicles returning to production at U.S. manufacturing plants.
Stellantis has announced that the Jeep Compass will be produced in Belvidere, Illinois, rather than Brampton, Ontario, as the company promised to the Canadian autoworkers union Unifor in its 2023 collective bargaining agreement.
Canadian workers and lawmakers reacted negatively to the switch, with Unifor president Lana Payne telling the Detroit Free Press in November that Canadians were “red in the face” over the “betrayal.”
On Dec. 4, Canada’s Industry Minister Mélanie Joly said the Canadian government plans to send Stellantis a “notice of default” (effectively a warning of breach of contract and a preemption of litigation) after Stellantis renegotiated its commitment to hire about 3,000 workers in Brampton.
Stellantis has received significant financial support from the Canadian government to fund vehicle production in two industrial cities: Windsor and Brampton. Now, the government is threatening to withhold funding and recoup money already paid if the automaker doesn’t bring Canadian employees back to work making cars in Brampton.
Stellantis paid $222 million as part of a deal to renovate factories in Brampton and Windsor, according to the Canadian Broadcasting Corporation. The Canadian government is threatening to default on the remaining payments on a $529 million loan that was meant to replace both plants.
Stellantis recently announced that approximately 1,500 new jobs will be added to its Windsor Assembly Plant in Canada to produce new internal combustion engine vehicles, the Dodge Charger and Chrysler Pacifica. Stellantis said a new third shift will begin in early 2026. Those jobs were offered to laid-off Brampton employees, but Windsor is about a four-hour drive from Brampton.
Lou Ann Gosselin, spokesperson for Stellantis Canada, told the Free Press: “Stellantis continues to work with the government in the agreement-based dispute resolution process. We are working towards our shared goal of securing a long-term, sustainable future for Canadian auto manufacturing, including in Brampton.”
Gosselin called the process “confidential” and declined further comment.
Liam Rapley covers Stellantis and the UAW for the Detroit Free Press. Contact him: LRappleye@freepress.com.
