Canada Issues Default Notice to Stellantis Over Brampton Plant Sale
Industry Minister Mélanie Joly warned Stellantis of legal action after the automaker sold its Brampton assembly plant to Roshel, breaching a federal funding agreement.
The Canadian federal government served a notice of default to Stellantis on November 12, 2026, after the automaker agreed to sell its Brampton, Ontario, assembly plant to armored vehicle manufacturer Roshel. Industry Minister Mélanie Joly stated the sale breaches a 2022 funding agreement in which the government committed up to $529 million for retooling. Joly noted that Stellantis halted Jeep Compass production and closed the plant without identifying a replacement vehicle, giving the company 30 days to correct these conditions or face lawsuits to recover public funds with interest.
Prime Minister Mark Carney initially characterized the sale as a "betrayal" of workers, though he later described the Roshel deal as a "partial solution." Carney maintained that Stellantis has failed its obligation to provide a global solution for the thousands of affected workers. The dispute follows the relocation of Jeep Compass production to Illinois in February 2025 due to U.S. tariffs, which resulted in over 2,000 layoffs.
Stellantis has offered to repay $24 million to the government and pledged to pay pensions for eligible workers. Meanwhile, Conservative Leader Pierre Poilievre accused the government of "reckless economic negligence" for failing to secure job guarantees. NDP Leader Avi Lewis called on the government to block the sale entirely. The labor union Unifor has authorized a potential strike as a last resort.
