Canada Cuts GM, Stellantis Tariff-Free Vehicle Import Quotas Over Production Cuts

The Canadian government has significantly reduced tariff-free import quotas for Stellantis and General Motors in response to both automakers scaling back their vehicle production in Ontario, which breaches commitments under Canada's auto remission framework. Stellantis faces a 50% cut in its quota, while GM's quota is reduced by approximately 24%, effective immediately. These measures follow Stellantis' decision to move Jeep Compass production to Illinois and GM's halt of BrightDrop electric van production in Ingersoll, Ontario, leading to substantial job losses. The government criticized these actions as unacceptable and a violation of their contractual obligations to Canada and its workers, emphasizing the importance of maintaining local manufacturing for tariff exemptions. Canadian officials have indicated readiness to pursue legal action if commitments are not met, highlighting the critical role of the auto sector in the nation’s economy. These developments come amid broader efforts by the Canadian government to protect the auto industry, a key employer and export sector.