Canada has told Stellantis it has 30 days to fix what Ottawa calls breaches of a 2022 funding deal, or the federal government will sue. The dispute is over the idle Brampton, Ontario, assembly plant, which Stellantis agreed this week to sell to armoured vehicle maker Roshel after moving Jeep Compass production to Illinois.[1][2][3] Industry Minister Mélanie Joly served the notice of default on Thursday, November 12, and says the carmaker is "on the hook for hundreds of millions of dollars". Stellantis has offered to return $24 million.[1][2][3][6]
 | |
| Who | Government of Canada and Stellantis[1][2] |
|---|---|
| Plant | Brampton Assembly, Brampton, Ontario (idle)[1][3] |
| Notice of default | Thursday, November 12, 2026[1][2][3] |
| Time to respond | 30 days (around December 12, by our count)[1][2][3] |
| 2022 funding | Up to C$529 million for Brampton and Windsor[2][4] |
| Stellantis offer | Return $24 million[1][3] |
| Buyer | Roshel, a Canadian armoured vehicle maker[1][2][4] |
| Workers affected | More than 2,000 at Brampton[2][4] |
What happened
Joly met Stellantis Canada chief executive Trevor Longley, the union Unifor and Ontario Premier Doug Ford in Toronto on Thursday. After the meeting she told reporters the government had served Stellantis with a formal notice of default under its funding agreement.[1][3] "We sent a notice of default and, basically, they have 30 days or else. Of course, we'll sue them," she said.[1][2][3]
The trigger was the sale. Stellantis said on Monday, November 9, that it had agreed to sell the Brampton plant to Roshel for an undisclosed sum.[1][2][4] CTV News reports the deal is expected to close by the end of this year.[3] Joly called the sale "unacceptable" and said Ottawa had tried for a year to find a solution.[3][4] "To be frank, I'm fed up," she said, adding that other carmakers are "doubling down on Canada" at the same time.[3]
Why Canada says Stellantis broke the deal
In 2022, Canada committed up to C$529 million (about US$380 million) to help Stellantis retool its Brampton and Windsor plants to build electric vehicles.[2][4] The plan for Brampton was the Jeep Compass. Stellantis later dropped that plan and moved Compass production to Illinois, a shift the Associated Press and CNBC both link to US tariffs during President Donald Trump's trade war.[1][2]
According to Joly's letter, as reported by CTV News, Stellantis breached the 2022 agreement in four ways: it halted Jeep Compass production at the plant, failed or refused to name a replacement vehicle, kept no production at the site, and closed the plant.[3] The AP's account of Joly's remarks matches the core of that, saying the minister accused Stellantis of abandoning Brampton "without identifying a replacement vehicle".[2]
The letter also says the Roshel sale shows Stellantis "is no longer diligently working in good faith", and that more breaches tied to the sale could be added to the notice.[3]
How much money is at stake
This is where the two sides are far apart. Joly says Stellantis owes "hundreds of millions of dollars".[1][2][3] Longley said in a statement that the company "will voluntarily return" $24 million in federal support it received for Brampton's original retooling plan.[1][3] CNBC described that amount as falling "significantly short" of the government's own estimate.[1]
If Stellantis stays in breach, CTV says the penalties in the agreement include ending the federal funding deal and repaying all or part of the money already received, plus interest.[3] Neither the government nor Stellantis has said publicly how much of the C$529 million went to Brampton as opposed to Windsor, so the exact claim is not known yet.[2][3][4]
What Stellantis says
Stellantis does not accept that the sale is the end of the road for the site. "While our decision to sell the plant represents a change from the original plans for Brampton, the agreement we have advanced with a Canadian manufacturer provides a path to return the facility to productive industrial use," Longley said.[1][3] He said the deal would create new jobs with priority hiring for Brampton workers, and that the company wants a "fair, negotiated resolution" with Unifor.[1][3]
Longley also said the decision lets the company focus on "sustaining competitive manufacturing operations in Canada in the face of challenging market realities".[1][3] Stellantis has more than 9,000 workers in Canada, according to CTV.[3]
Workers, the union and Roshel
More than 2,000 Canadian workers lost their jobs when Compass production went south, the AP reports. BTPM, the public broadcaster in Buffalo and Toronto, puts the number already laid off at Brampton at 2,200.[2][4]
Unifor had tried to block any sale. After Thursday's meeting, union president Lana Payne said the talks failed to produce a resolution. "We can't stop the sale. The sale has occurred, so we would have to reverse it, which is doubly difficult, obviously," she told reporters.[2][4] Roshel chief executive Roman Shimonov has said his firm will not take responsibility for workers already laid off, but that people from Brampton will get priority for jobs at the Roshel plant.[3][4]
Prime Minister Mark Carney has called the situation "unacceptable" and a "betrayal" of the plant's workers. The AP says he described the sale as a partial solution that does not meet the company's obligations.[1][2]
Why it matters beyond Brampton
Autos are Canada's second-largest export. Carney has said the sector employs 125,000 Canadians directly and almost 500,000 more in related industries, the AP reports.[2] The industry is tightly tied to US factories, and Trump has repeatedly pushed carmakers to move production south of the border.[1][2]
For Stellantis, the fight comes during a hard year. The company owns Jeep, Dodge, Chrysler, Fiat and Peugeot, and CNBC reports its Milan-listed shares are down more than 60% so far in 2026.[1] The AP calls it the world's fourth-largest carmaker.[2]
What happens next
- Meeting with the global CEO. Joly says she will meet Stellantis' global chief executive, Antonio Filosa, with the Ontario government.[2][3]
- The 30-day clock. Stellantis has 30 days from the November 12 notice to show it will "correct these conditions", or Joly says she will declare the company in default.[1][3]
- A lawsuit, if no deal. Joly has said Ottawa will sue. Payne warned that undoing a sale that has already been signed would be "doubly difficult".[1][2][4]
- The Roshel closing. The sale is expected to close by the end of 2026.[3] Ottawa has not said it will try to block it. Joly "made no mention of blocking the sale" when she first reacted, BTPM reported, and Automotive News reported on Friday that Ottawa signals it won't block it.[4][5]
Frequently asked questions
Why is Canada suing Stellantis?
Canada has not filed a lawsuit yet. It has served a notice of default saying Stellantis broke a 2022 funding agreement by ending production at Brampton without a replacement vehicle and then selling the plant. Stellantis has 30 days to respond before Ottawa says it will sue.[1][2][3]
How much money did Canada give Stellantis?
Canada committed up to C$529 million in 2022 to help retool both the Brampton and Windsor plants for EVs. Joly says Stellantis owes "hundreds of millions of dollars". Stellantis has offered to return $24 million.[1][2][3][4]
Who bought the Brampton Stellantis plant?
Roshel, a Canadian armoured vehicle manufacturer. Stellantis announced the deal on November 9 and did not disclose the price.[1][2][4]
Where did the Jeep Compass go?
To a Stellantis plant in Illinois, after the company dropped plans to build it in Brampton.[1][2]
What happens to the Brampton workers?
More than 2,000 are without jobs. Stellantis and Roshel say Brampton workers will get priority for hiring at the new Roshel operation, and Stellantis says it wants a negotiated settlement with Unifor.[2][3][4]
References
- "'We will sue them': Canada threatens Stellantis as Trump trade war reshapes Jeep production plans", CNBC, 13 November 2026.
- "Canada threatens to sue Stellantis over auto plant sale as Trump's trade war shifts production south", Associated Press (via Temple Daily Telegram), 12 November 2026.
- "'To be frank, I'm fed up': Minister Joly slams Stellantis after meeting over plant sale", CTV News, 12 November 2026.
- "Stellantis confirms sale of Brampton plant, Canadian government plans to sue", Dan Karpenchuk, BTPM, 10 November 2026.
- "Ottawa signals it won't block Stellantis from selling Brampton plant to Roshel", Automotive News, 13 November 2026 (headline).
- "Canada is threatening to sue Stellantis over Brampton plant sale", Quartz, 13 November 2026 (headline).