As the auto industry reacts to ever-shifting tariffs, many companies are moving assembly to U.S. factories. When Stellantis announced it would move the Jeep Compass from Brampton, Ontario, to Illinois, the U.S. cheered. Investors breathed a sigh of relief. But now Canada’s saying, “Not so fast!”

Stellantis asked the Canadian government for help when it retooled its plants in Brampton and Windsor, Ontario. The government dished out $222 million to keep those plants open and Canadian workers employed. That’s not all. It also forked over another $530 million for a joint Stellantis–LG venture to build an EV battery plant. That retooling was just two years ago. And it’s already shut down the Brampton plant.

Of the $752 million promised, Canada says it’s already shelled out $358 million USD ($500 million Canadian). And it wants Stellantis to either hold up its end of the bargain or give the money back. Industry Minister Melanie Joly said, “I’m formally announcing that we’re serving Stellantis with a notice of default under the contracts.”

Stellantis pulls a no-show at Canada’s House of Commons

Canada’s House of Commons international trade committee demanded that Stellantis explain itself. It scheduled a video conference with Teresa Piruzza, director of external affairs and public policy at FCA Canada. But when meeting time came, Piruzza was a no-show.

She has since blamed technical difficulties, but the committee isn’t having it. It demanded an in-person meeting.

Piruzza made it to the next committee meeting. She says, “We do not agree that we are in breach of contract.” She hopes Stellantis will find something for the workers to assemble in lieu of the Compass. She claims the company is going to “review the operations at that plant in terms of what the plan is for production moving forward.” She insists it isn’t currently shut down, but “on an operational pause.”

Stellantis employs 3,000 workers at its Brampton plant.