The federal government has launched a dispute-resolution process against Stellantis in the wake of automaker’s shift of its Jeep Compass production to plant in Illinois from Brampton, Ont.

The move has left the future of the idled Brampton plant uncertain.

Industry Minister Mélanie Joly told a House of Commons committee that she notified Stellantis in a letter on Monday that Ottawa will seek reimbursement of funds provided to the company if it does not commit to assembling another vehicle in Brampton. The government contends that the Stellantis move breaches funding agreements linked to the Brampton facility and two others in Ontario, The Globe and Mail reported.

In 2022, Ottawa committed about $1 billion to retool the Stellantis plans in Brampton and Windsor, Ont., the Globe reported. The Brampton plant has been closed for almost two years and its 3,000 employees are on layoffs.

Stellantis spokeswoman LouAnn Gosselin told the Globe on Monday that the plant is on “operational pause.”

“We continue to work constructively with government partners and other stakeholders on a plan for Brampton to find viable solutions that build a sustainable, long-term future for automotive manufacturing in Canada,” she told her interviewer via email.

The federal government has also committed $15 billion to help fund the future NextStar EV-battery plant in Windsor, Ont. The plant is a joint-venture between Stellantis and South Korea’s LG Energy.

According to the Globe, Ottawa has given $42 billion to the NextStar plant.

Pictured: Stellantis auto plant in Brampton, Ont.

Photo: Unifor