Canada threatens Jeep-maker Stellantis over possible US move

Pritti MistryBusiness reporterGetty ImagesThe Canadian authorities has threatened authorized motion in opposition to world automobile big Stellantis over its plans to maneuver manufacturing of the Jeep Compass to the US.Earlier this week, Stellantis revealed a $13bn (£9.68bn) funding in America and plans to shift manufacturing of the Compass mannequin from Ontario to its Illinois plant. Canada’s Trade Minister Mélanie Joly mentioned the agency had made a “legally binding” dedication to remain within the metropolis of Brampton in alternate for monetary assist, and would “train all choices, together with authorized” if it didn’t uphold the settlement.In an announcement to information company Reuters, Stellantis mentioned it was investing in Canada and had plans for its Brampton plant. In her letter to Stellantis chief government Antonio Filosa, Mélanie Joly mentioned the nation had given the corporate “billions of {dollars}” and the transfer would jeopardise the way forward for its Brampton manufacturing facility.In an announcement on Wednesday, Mr Filosa it was the most important funding within the firm’s historical past, and “would drive our development, strengthen our manufacturing footprint and convey extra American jobs to the states we name dwelling” – however didn’t point out its Canadian operation. Responding to the announcement, Joly mentioned the automobile maker and the Canadian authorities had “constructed a robust and enduring partnership”.”We had been there for the corporate in 2009 to tug it again from the brink of chapter, and now we count on you to be there for Canadians,” she added.Canada’s Prime Minister Mark Carney mentioned the federal government was working with the corporate to guard Stellantis employees on the Brampton web site and check out “to create new alternatives” for them domestically.On its plans in Canada, Stellantis it will reveal extra info after “additional discussions with the Canadian authorities”.Reuters reported that the automobile maker had paused retooling of the manufacturing facility in February after US President Donald Trump introduced tariffs in opposition to Canadian items.Stellantis owns 14 automobile manufacturers, together with Alfa Romeo, Maserati, Jeep, Fiat, Citroen, Chrysler and Dodge.Whereas the automobile maker has manufacturing crops within the US, it additionally produces autos within the UK, Europe, Canada, Mexico and South America.In July, the corporate mentioned tariffs imposed by the Trump administration had price it $349.2m (£259.6m).Trump launched automobile tariffs to spice up the American automobile manufacturing business, however inside a month he eased tariffs on international automobile elements.On Tuesday, Trump’s new 10% tariff on softwood lumber got here into impact. It means merchandise from Canada – the second largest producer globally and a serious US provider – now face levies of greater than 45%.Most Canadian producers already confronted a mixed 35% in US tariffs as a consequence of a long-running commerce dispute between the 2 international locations over the product.