The federal government has cut back on the number of tariff-free vehicles that Stellantis and GM can import into Canada after the auto giants changed course at two Southwestern Ontario plants, The Globe and Mail reported.

Citing a federal government source, the Globe reported that Stellantis’ tariff-free import total has been cut by 50% and GM faces a 24.2% reduction under what are known as remission quotas.

Prime Minister Mark Carney’s government fired back after Stellantis decided to move production of its Jeep Compass to Illinois from Brampton, Ont., as part of a US$13-billion investment in its American manufacturing operations. GM felt Ottawa’s wrath after deciding to cease making the Bright Drop electric parcel-delivery van. The company had been producing the vans at its plant in Ingersoll, Ont.

Both Stellantis and GM’s decisions have raised concerns about the future of both plants, although that the automakers say that they plan to make different vehicles at the facilities. Stellantis’ Brampton plant has been closed for retooling sine 2023. The GM plant had also been closed in recent months for retool and will now be idled, affecting 1,100 employees.

In a post on social-media network X, Finance Minister François-Philippe Champagne expressed deep disappointment with the Stellantis and GM plant changes. He called the reduced remission quotas “a clear consequence.”

The quotas are tied to production totals that the automakers must maintain at their Canadian facilities.

In a letter to GM President Kristian Aquilina shared publicly, Champagne said the government will considering raising the remission quota if the company secures another mandate for the Ingersoll government.

Ottawa’s move to curb tariff relief drew complaints from automakers. Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association, which represents GM, Stellantis and Ford, called Canada’s retaliatory effort “an unforced error at the worst possible time.”

The federal government also has threatened to take Stellantis to court over its decision to move Compass Jeep production to Illinois from Brampton.

Pictured: Stellantis auto plant in Brampton, Ont.

Photo: Unifor