Stellantis Is in Default for Moving Jeep Production to U.S., Canada Says

New York Times - WorldCenter-LeftEN 4 min read 100% complete by Ian Austen and Matina Stevis-GridneffDecember 5, 2025 at 03:09 AM

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In December 2025, the Canadian government formally notified Stellantis, a European-based automaker, that it was in default of contracts covering hundreds of millions of dollars in assistance. The default stems from Stellantis's decision to move Jeep Compass production from its plant in Brampton, Ontario, to Illinois, a move reportedly influenced by President Trump's demand for automakers to return manufacturing to the U.S. Canada's industry minister, Mélanie Joly, stated that Stellantis is "on the hook" and that the government will defend Canadian jobs. The company had agreed to revamp the Brampton factory to produce the Jeep Compass in exchange for government assistance, potentially totaling 529 million Canadian dollars. The future of the Brampton factory and its 3,000 employees is now uncertain, as Stellantis has not indicated what will replace the SUV production.

Key Entities & Roles

Key Player Opposition Context

Mélanie Joly 60% Canada ×370% Stellantis ×480%

Keywords

stellantis 90% automaker default 90% jeep compass production 80% government assistance 70% canada 70% contract breach 60% manufacturing jobs 60% retooling factory 50% president trump 50%