Canada could take the unprecedented step to launch legal action against car manufacturing giant Stellantis in a direct response to US President Donald Trump's auto tariffs.
Stellantis announced widespread plans to invest $13billion (£9.67billion) into the United States, making it the largest investment in the company's history.
Proposals would add 5,000 jobs and see the creation of a number of new vehicles, as Stellantis looks to expand its US production by 50 per cent.
One of the most controversial measures includes the development of two new Jeep models at its site in Belvidere, Illinois.
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The decision to move production of the Jeep Compass away from a Canadian facility in Brampton, Ontario, has sparked backlash from the Canadian government.
Taking to social media site X, formerly known as Twitter, Industry Minister Mélanie Joly, stated that the Canadian Government would "never waver" in its commitment to automotive workers across the country.
She also included a copy of a letter sent to Stellantis CEO Antonio Filosa in which she detailed "extreme concern" regarding plans to move production of its vehicles out of Canada.
The letter acknowledged that President Donald Trump's automotive tariffs had created a difficult situation, but that Stellantis was expected to honour important commitments to Canada and its workforce.
The Canadian Industry Minister warned that the government could launch legal action against Stellantis
|REUTERS/STELLANTIS
It also highlighted that the Canadian government supported Stellantis to "pull it back from the brink of bankruptcy", adding that Ms Joly expected the manufacturer to be there for Canadians in return.
Ms Joly continued, saying: "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.
"The business decision to move the mandate of the Jeep Compass is unacceptable. It jeopardises the future of Brampton and its unionised workforce.
"It is critical that you quickly identify new mandates for Brampton and ensure the facility remains central to your manufacturing footprint, and that contracts with Canadian suppliers to be honoured."
Stellantis announced that it would be moving production of the Jeep Compass out of its Canadian facility
|REUTERS
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Stellantis announced a huge $13billion investment boost for its US operations
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Similarly, Doug Ford, Premier of Ontario, where the Brampton facility is located, said he had expressed his disappointment to Stellantis.
LouAnn Gosselin, a spokesperson for Stellantis, confirmed that the manufacturing giant was investing in Canada and planned to add a third shift to a plant in Windsor, Ontario.
She added: "Canada is very important to us. We have plans for Brampton and will share them upon further discussions with the Canadian government."
Backlash to Stellantis' decision has been stark, with Canada's largest private-sector autoworker union, Unifor, slamming the move.
Stellantis announced a huge investment boost for its US operations, including its Belvidere assembly plant in Illinois
|REUTERS
The union's national president, Lana Payne, called on Prime Minister Mark Carney to "fight" for auto jobs across the country.
Unfior highlighted that the decision to move production of the Jeep Compass from Ontario to Illinois was directly influenced by Donald Trump's trade war.
In a damning comment on the situation, Ms Payne said: "Canadian auto jobs are being sacrificed on the Trump altar."
Stellantis CEO Antonio Filosa stated that accelerating growth in the US had been a "top priority" since ascending to the role in June earlier this year.