LANSING, Mich. (Michigan News Source) — Canada is warning Stellantis it may pull federal funding and demand repayment after the automaker scrapped its plan to build the Jeep Compass in Ontario and moved the work to Illinois instead.

Ottawa says Stellantis broke a 2023 commitment with Canada’s auto union, prompting officials to prepare a “notice of default,” the first step toward enforcing the deal. 

MORE NEWS: Ranked Choice Voting Gets Major Thumbs Down from Michigan Clerks

So far, Canada has provided $222 million to modernize Stellantis plants in Brampton and Windsor and was set to release another $529 million.

Stellantis says it’s redirecting production to avoid new U.S. auto tariffs and is adding 1,500 jobs at its Windsor plant. But Canadian officials insist the company must honor its commitments to roughly 3,000 workers in Brampton—or risk losing the money.