Canada Declares Stellantis in Default Over Brampton Plant Sale to Roshel
The Canadian federal government has terminated its resolution process with Stellantis, declaring the automaker in default of a 2022 funding agreement after it announced plans to sell its Brampton assembly plant to Roshel Inc. While Stellantis offered to repay $24 million in subsidies, Industry Minister Mélanie Joly stated the company owes hundreds of millions.
The Canadian federal government has declared automaker Stellantis in default of a 2022 funding agreement and terminated the associated resolution process following the company's announcement that it plans to sell its Brampton, Ontario, assembly plant to armoured vehicle manufacturer Roshel Inc.
Industry Minister Mélanie Joly issued the formal notice of default. Under the original 2022 deal, Ottawa agreed to inject up to $529 million into Stellantis plants in Brampton and Windsor to retool them for electric and gas-powered vehicles. Government records previously showed roughly $220 million worth of subsidies were given to Stellantis to help upgrade plants across the province.
Stellantis Canada CEO Trevor Longley stated the company will return $24 million in federal subsidies. Minister Joly contradicted this offer, asserting that Stellantis owes "hundreds of millions" in subsidies.
The dispute follows significant operational changes at the Brampton facility. More than 2,000 workers have been out of work since operations halted in 2023 for retooling. About 1,800 workers from the plant remain on layoff, receiving 70 per cent of their pay and benefits since 2023. Stellantis paused the Brampton retooling plan in early 2025 and announced in October 2025 that the Jeep Compass would be built in Belvidere, Illinois, instead.
The plant sale and ongoing layoffs have drawn sharp political and union criticism. Unifor National President Lana Payne criticized the federal government for not acting sooner regarding the plant sale. Conservative Leader Pierre Poilievre called on Prime Minister Mark Carney to remove Mélanie Joly as minister over the matter.
Prime Minister Carney stated his government was informed of "some aspects" of the sale plan before the announcement. In contrast, Joly's office insisted she had no part in negotiating the deal.