Canada Serves Stellantis With Notice of Default Over Brampton Plant Sale
The Canadian government has issued a notice of default to automaker Stellantis over a federal funding agreement after the company agreed to sell its Brampton, Ontario, assembly plant to defence contractor Roshel. Industry Minister Mélanie Joly says Ottawa is prepared to sue to recover hundreds of millions of dollars in federal funds.
The Canadian government has served automaker Stellantis with a notice of default related to a federal funding agreement, escalating a dispute triggered by the company's decision to sell its assembly plant in Brampton, Ontario.
Industry Minister Mélanie Joly stated that Ottawa is prepared to sue Stellantis to compel the return of federal funds. The automaker received hundreds of millions of dollars as part of the funding agreement now at the centre of the conflict.
The dispute arose after Stellantis signed a deal to sell its Brampton assembly plant to defence contractor Roshel. The notice of default signals that the Government of Canada views the sale as a breach of the terms under which the federal funding was provided.
If the matter proceeds to litigation, Stellantis could face legal action requiring it to repay the hundreds of millions of dollars in federal support it previously received.