The federal government is threatening to take Stellantis to court over its decision to move production of the Jeep Compass from Brampton, Ont., to Illinois.

Industry Minister Mélanie Joly issued the warning in a letter to Stellantis CEO Antonio Filosa after the automaker announced a US$13-billion plan to boost U.S. production by 50% over four years, The Globe and Mail reported.

Industry observers say Stellantis is attempting to avoid U.S. President Donald Trump’s 25% import taxes, which have cost American automakers billions, reduced profits and disrupted long-standing North American supply chains, the Globe reported. Automakers in Ontario have responded with layoffs, production cuts and delays as exports to the U.S. decline.

Stellantis’s Brampton plant, closed for nearly two years for retooling, had been slated to produce the Compass SUV upon reopening. The automaker also runs a minivan plant in Windsor, Ont., and is a partner with LG Energy Solutions in the $15-billion NextStar EV battery plant under development in Windsor, jointly funded by Ottawa and Ontario. The funding is tied in part to production-based incentives.

Ms. Joly called Stellantis’s move “unacceptable,” the Globe reported.

She warned that the automaker made legally binding commitments to maintain its Canadian presence, including in Brampton, in exchange for “substantial” public support.

“Anything short of fulfilling that commitment will be considered as default under our agreements,” Joly wrote. “Should Stellantis choose not to respect its obligations, we will act in the interests of all Canadians and hold the company to full account, and exercise all options, including legal.”

Stellantis confirmed receipt of Joly’s letter but declined further comment, the Globe reported.

“We have plans for Brampton and will share them upon further discussions with the Canadian government,” the company said in a statement to the Globe. “We do not comment on our discussions with government officials.” .

A senior government official told the Globe that Ms. Joly appealed directly to Stellantis’s Canadian president ahead of the announcement but was unable to persuade the company to change course. The official added that there are no current plans for further engagement with Stellantis executives.

Joly was expected to meet with Unifor, which represents Brampton workers, and Ontario government officials as early as Thursday.

Vito Beato, president of the Unifor local at the Brampton plant, told the Globe that, in discussions about the Compass move, company officials did not mention any plans to assemble a different vehicle at the facility.

“The company said it has to do with the tariffs and the feasibility of building cars in Brampton,” Beato told his interviewer.

He called the moved “disrespectful and disgusting.”

Stellantis spokeswoman Lou Ann Gosselin told the Globe that Canada remains “very important” to the firm. She noted that the company’s $8.6-billion in announced Canadian investments from 2022 — including $1 billion for Brampton — are largely complete or in progress.

By early 2026, Stellantis expects to have added 2,500 jobs in Canada, including a third shift at its Windsor minivan plant and the NextStar battery facility, she told the Globe.

But Ontario Premier Doug Ford said the province’s financial support for the Windsor battery plant may now be in jeopardy.

“I’m not going to give them a penny because it was tied in to … keep Brampton going,” he told reporters. “It’s disappointing. They said they’re going to keep Brampton open.”

Pictured: Stellantis employee at work in the company’s automobile plant in Brampton, Ont.

Photo: Stellantis