Canada has given Stellantis 30 days to make things right over its decision to move Jeep Compass production to Illinois and sell an idled Ontario plant. If it doesn’t, Ottawa says it will sue to recover hundreds of millions of dollars in public money. The dispute, which came to a head on Thursday, Nov. 12, shows how the trade fight between the U.S. and Canada is moving factory jobs across the border.
What happened
Industry Minister Mélanie Joly said the federal government sent Stellantis a formal notice of default under the funding agreement the company signed with Canada in 2022, the Associated Press reported. The Toronto Sun reported that the notice went to Stellantis Canada CEO Trevor Longley and ended the dispute-resolution process under that deal. Joly said Stellantis broke the agreement by walking away from production at its Brampton, Ontario, plant without naming a replacement vehicle.
“We sent a notice of default and, basically, they have 30 days or else.” — Industry Minister Mélanie Joly (via AP)
Joly spoke after a 90-minute meeting on Thursday with Stellantis, the Unifor autoworkers union and Ontario officials. “I’m fed up,” she said afterward, according to the Toronto Sun. She added that the timing was bad because other automakers are investing more in Canada.
The plant sale and the money at stake
In 2022, Canada committed up to C$529 million (about US$380 million) to help Stellantis retool its Brampton and Windsor plants for electric vehicles, the AP reported. Brampton was idled in 2023 so it could be retooled for the next-generation Jeep Compass. Trade uncertainty tied to U.S. policy then put those plans on hold, and Compass production moved to the United States. The AP said more than 2,000 Canadian workers lost their jobs.
On Monday, Nov. 9, Stellantis agreed to sell the Brampton plant to Roshel, a Canadian maker of armored vehicles. The price was not disclosed. Roshel CEO Roman Shimonov said the company plans to rehire some laid-off Stellantis workers and lease part of the plant back to Stellantis, the Toronto Sun reported.
A Stellantis spokesperson said the company has offered to repay voluntarily the money it received for the original Brampton plan, but would not give figures, citing confidentiality. Canada says that is not enough.
What each side is saying
- Canada’s government: Prime Minister Mark Carney called the sale a “partial solution” and said Stellantis betrayed Canadian workers, according to the AP and the Toronto Sun.
- The union: Unifor President Lana Payne called the sale a “worst-case scenario.” She said Thursday’s meeting did not resolve anything and that reversing a completed sale would be very difficult.
- Stellantis: The company points to its offer to repay the Brampton funding. A request for further comment was not immediately returned, the AP said.
This has been building for a while. Canada first said in December 2025, in a Canadian Press report carried by CTV News, that it would serve Stellantis a notice of default after the production shift. The sale to Roshel and the new 30-day deadline mark the latest escalation.
The U.S. side: Belvidere, Illinois
Stellantis is moving the Compass to its plant in Belvidere, Illinois, which has been closed since 2023. When the company announced the reopening in October 2025, ABC7 Chicago reported that the plant was expected to employ about 3,300 people. The report said expanded Jeep Compass and Cherokee production would begin in 2027, as part of a $13 billion Stellantis investment plan across the U.S.
The AP tied the move to President Donald Trump’s trade war and tariffs, which have pressured automakers to build more vehicles in the United States. Upstormed News has covered how prices and jobs are holding up, including October’s jobs report.
Why it matters for families
Autos are Canada’s second-largest export, and Carney said the sector directly employs 125,000 Canadians and supports almost 500,000 more jobs, the AP reported. For families in Brampton, the sale decides whether paychecks come back and how many. For families around Belvidere, the same shift could bring a long-closed plant back to life. Cars and parts cross the U.S.-Canada border many times as they are built, so trade disputes like this one can also show up in vehicle prices and the choices on dealer lots.
What to watch next
- Whether Stellantis and Canada settle before the 30-day deadline, or Ottawa goes to court.
- A planned meeting between federal and Ontario officials and Stellantis’ global chief executive, which Joly mentioned.
- How many former Stellantis workers Roshel rehires in Brampton.
- Progress on reopening Belvidere ahead of the 2027 production target.
Upstormed News will follow the dispute as the deadline nears.
Read more: Walmart, Target, Home Depot earnings next week to test holiday shoppers
Should governments be able to take back aid when companies move jobs elsewhere? Share your view in the comments.
Sources: Associated Press via Transport Topics, “Canada threatens to sue Stellantis over auto plant sale” (November 13, 2026); Toronto Sun via Yahoo News Canada, “Joly fed up with Stellantis, threatens lawsuit over Brampton plant sale” (November 13, 2026); CTV News/Canadian Press, “Joly says Stellantis getting a notice of default following production shift to U.S.” (December 4, 2025); ABC7 Chicago, “Stellantis to reopen Belvidere plant to produce Jeep Cherokee, Compass” (October 15, 2025)
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