Canada’s federal government has issued Stellantis a final 30-day deadline to uphold its obligations regarding the Brampton, Ontario, assembly plant or face legal consequences over the CA$529 million ($374 million) in public funds allocated for the facility. The warning follows Stellantis’ decision to sell the plant to defense contractor Roshel for an undisclosed sum, a transaction that could eliminate about 2,000 jobs—well below the 4,475 positions the company was contractually required to maintain through 2036 under a 2022 federal agreement.
Industry Minister Mélanie Joly announced Thursday that negotiations over the federal support had concluded, with her office issuing a notice of default. The government now demands repayment of the funds or will pursue legal action. “Stellantis is in breach of its contract and commitments to Canada and the workers of Brampton,” Joly stated after meeting in Toronto with Stellantis representatives, the auto union Unifor, and Ontario Premier Doug Ford. “I was extremely clear. Stellantis is on the hook for hundreds of millions of dollars. Stellantis knows how much it owes. We have sent them a notice of default.”
Stellantis Canada CEO Trevor Longley acknowledged in a statement that the company would return CA$24 million of the federal support linked to the plant’s initial retooling. He emphasized the contributions of Brampton’s workforce but did not address the broader job losses under Roshel’s ownership or the facility’s future production plans. The 2022 federal funding included strict conditions requiring Stellantis to sustain operations at both Brampton and Windsor plants until at least 2036, ensuring continued employment.
Roshel’s acquisition, announced earlier this year, now threatens those commitments. Joly contrasted Stellantis’ move with other automakers investing in Ontario, such as Honda Canada, which is spending CA$166 million to modernize its Alliston plant. “Other automotive manufacturers are doubling down on Canada and investing in their plants,” Joly said.
The dispute highlights deeper conflicts over automotive investment in Canada. Unifor national president Lana Payne condemned the plant’s sale as unfair, particularly given potential U.S. trade policies that could soon benefit Canadian manufacturing. “We’re in a place where we’re going to get a trade deal sooner or later,” Payne said. “The conditions are changing in the USA.” Citing the 2021 restart of General Motors’ Oshawa Assembly plant east of Toronto after a two-year production suspension, Payne said Unifor’s ongoing collective bargaining demands for Brampton reflected the difficult financial position faced by Stellantis worldwide at present. “We weren’t asking for the moon and the stars; we didn’t even ask for a product; but we said, ‘Don’t sell and don’t close,’” Payne said.