Stellantis received $105M from Ottawa for Ontario facilities prior to revealing U.S. strategy 

October 22,2025

RED FM News Desk

After providing Stellantis nearly $105 million to retool two Ontario plants, the federal government is reviewing whether the automaker violated the funding agreements by announcing it will move Jeep Compass production from Brampton, Ontario, to Illinois. 

Finance Minister François-Philippe Champagne confirmed the government intends to enforce its contractual rights, while Industry Minister Mélanie Joly said Stellantis has “legally binding commitments” to maintain its Canadian operations in exchange for financial support. The funding, part of a larger $529 million investment under the Strategic Innovation Fund, aimed to modernize Windsor and Brampton plants and support electric vehicle production. 

So far, Ottawa has disbursed $18.6 million in 2023 and $85.9 million in 2024, with additional payments tied to Stellantis’s NextStar Energy battery project. While the government has leverage linked to job creation, it is unclear how much it can recover if Stellantis breaches its commitments. 

The situation has drawn criticism in Canada and praise in the U.S., with President Trump’s administration celebrating the American expansion. Joly is also consulting with other automakers, including Honda, Ford, and GM, as Canada continues supporting the auto sector’s transition to electric vehicles.