Canada gave Stellantis 30 days to address the Brampton plant sale
Industry Minister Mélanie Joly says the automaker is on the hook for hundreds of millions of dollars, without naming a figure, after it agreed to sell the idle Ontario plant.
By Connor O'Brien ·
Why it matters: A 2022 funding agreement is the leverage Ottawa still has after Stellantis moved its planned Jeep Compass production to Illinois and Joly indicated the government cannot block the sale.
For information only, not investment advice. Prices delayed.
Tickers: STLA
Stellantis ($STLA) said Monday it had agreed to sell its idle Brampton, Ontario, plant to armored-vehicle maker Roshel for an undisclosed amount, after scrapping plans to build the Jeep Compass there and shifting future production to Illinois amid U.S. auto tariffs and other market pressures.1 CBC News reported that Stellantis paused retooling in early 2025 and announced the Illinois plan in October, and that Ottawa says the planned sale violates a 2022 funding agreement.3 Canada is right to treat that contract as still in force.
“We sent a notice of default and, basically, they have 30 days — or else, of course, we will sue them,” Industry Minister Mélanie Joly told reporters on Thursday.1 She said Stellantis had violated its commitments to the government and to Brampton workers, and that the company was now on the hook for hundreds of millions of dollars.1 When pressed, she would not name a figure, and she indicated the government will be unable to block the sale.3
Trevor Longley, CEO of Stellantis Canada, said in a Nov. 12 statement that the sale offers a path back to industrial use and new jobs with priority hiring consideration for Brampton workers.2 He said the company will voluntarily return $24 million CAD in federal support for the original retooling plan, and that the move lets Canada's largest automotive employer focus on remaining competitive operations.2 About 1,800 Brampton workers are still on layoff, Stellantis says.3
A proposed repayment of $24 million CAD does not settle Ottawa's claim of hundreds of millions, a figure Joly will not name. It can still enforce the contract, and 30 days is a deadline, not a shrug.
Sources
- ‘We will sue them’: Canada threatens Stellantis as Trump trade war reshapes Jeep production plans, CNBC
- Statement attributable to Trevor Longley, Stellantis Canada CEO regarding today's discussion with representatives of the Canadian and Ontario governments and Unifor, Stellantis
- Feds say Stellantis owes 'hundreds of millions' in subsidies, company offers $24M, CBC News
Tags: tariffs-trade · ev-autos · jobs · regulation