Canadian Industry Minister Mélanie Joly stated on Tuesday that officials will seek to reclaim "hundreds of millions of dollars" from Stellantis and General Motors after the automakers scaled back production in Canada.

She indicated that more details will be provided in the coming days. Negotiations between Canadian officials and representatives from Stellantis have been ongoing since at least November, after the automaker announced it would shift production of the Jeep Compass from its Brampton, Ontario plant to Illinois. Earlier this decade, Canada provided the automaker with just over C$1 billion (equivalent to $731 million) to retool the Brampton facility and maintain production in the country.

"A significant portion of our support is tied to production volumes. Therefore, if there is no production, there will clearly be no funding," Joly remarked ahead of a cabinet meeting. She had previously threatened to sue Stellantis to recover taxpayer funds.

Last week, Joly also stated she would seek repayment from General Motors after the Detroit-based company proceeded with its plan to eliminate the third shift at its Oshawa, Ontario assembly plant. In October of last year, General Motors also announced it would not resume production of an electric van at its Ingersoll, Ontario facility due to weak demand. At that time, Joly said she would seek to reclaim approximately C$260 million in funding that Ottawa had provided for the Ingersoll plant.