Canadian Minister Threatens Legal Action Against Auto Manufacturer Expanding In US

October 16, 2025

https://www.bnnbloomberg.ca/business/company-news/2025/10/15/hold-them-to-account-joly-threatens-legal-action-against-stellantis-over-jeep-production-shift/

Melanie Jollie has threatned to take legal action against Stellantis after th4 company announced shifting some Jeep Production to US following tarrifs on grounds the company would not be honouring commitments.

In 2009 the company was bailed out and in in the years since has received Billions in commulative tax payer investments that came with obligations to honour the minister claims.

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My Opinion: This is why you dont bribe giant corporations with grants and investments. If you wanna be more competitive spread tax benefits evenly for everyone dont select specific companies to receive all the lump sum bribes as they can ditch you at any moment. Its a very idiotic way to invest

It may make sense in the case of start ups of new sectors for government investment to be part of a strategy (for example when green energy started) but stellantis has been around 100 years. Theres no reason to give away Billions

October 16, 2025

Also this is a battle Canada wont win.

Even tho breaking apart the efficient and cost effective supply chain North America has built isnt necessairily in Americas best interest and will raise costs in all 3 Countries, Canada & Mexico will still hurt to a greater degree than in the US

It may be costlier and the US may loose exports with it as well but to avoid tarrifs at least some expansion will move to the US if they stay for long because the market is just so much bigger so if u wanna pick 1 country to avoid tarrifs it makes sense to be the US

Edited October 16, 2025 by Economy