(By Observer Network, Zhang Jiadong; Editor: Gao Xin)

According to Reuters, on October 16 local time, after Stellantis announced an investment of $1.3 billion (about 92.63 billion Chinese yuan) in the US this Tuesday, the Canadian government said it would take legal action against Stellantis.

Chrysler Windsor Assembly Plant in Ontario, Canada - Reuters

According to Stellantis' recent plan, its investment in the US includes launching five new models for the US market, and the production of Jeep Compass will be transferred from a factory in Brampton, Ontario, Canada to Illinois, USA.

Canadian Minister of Industry Melanie Joly wrote a letter to Stellantis CEO Antonio Filosa, stating that the company has agreed to retain its business in Canada in exchange for substantial financial support. "However, any failure to fulfill this commitment will be considered a breach of the agreement, and if Stellantis fails to meet its commitments, Canada will take all measures, including legal actions."

This year, after Trump announced breaking the USMCA and imposing tariffs on Canadian goods, Stellantis suspended the renovation of the Brampton factory from February.

This move not only broke the highly integrated automotive industry structure in North America but also immediately escalated trade tensions among the three countries in North America.

Canadian Prime Minister Mark Carney stated in a recent statement that Ottawa has clearly expressed its hope that Stellantis fulfills its commitments to factory workers. Ontario Premier Doug Ford said on social media: "I have spoken with Stellantis and expressed my disappointment with their decision."

According to the data, Ontario, which is affected by the transfer of Stellantis' production capacity, is the industrial center of Canada, accounting for about 40% of Canada's GDP.

Stellantis spokesperson LouAnn Gosselin said the company is increasing its investment in Canada and plans to add a third shift at a factory in Windsor, Ontario. However, her email statement also showed that this investment plan has not been shared with the Canadian government yet.

Getty Images

This incident is one of the cases where multinational automakers have conflicts with other governments due to Trump's trade war. This week, the South Korean Minister of Trade, Industry and Energy publicly stated that the investment plan of one of its economic pillar enterprises, Hyundai Group, worth hundreds of millions of dollars in the US, is affecting the government negotiations.

But in fact, even though Hyundai Group has continuously increased its investment and construction in the US since the beginning of this year when Trump threatened to impose tariffs on other countries, the attitude of the US government towards Hyundai regarding tariffs and factory workers throughout the year has not resulted in any "preferential policies" offered by Trump for Hyundai.

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