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Canada declares Stellantis in default over Brampton plant sale, threatens lawsuit

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Summary

  • Canada's government is fighting Stellantis over its sale of the idled Brampton, Ontario plant and its shift of Jeep production to the United States.
  • The plant has been idled since 2023; Stellantis moved Jeep Compass production to Illinois in 2025 amid US tariffs, laying off more than 2,000 workers.
  • In 2022 Ottawa committed up to C$529 million and Ontario C$513 million to retool the Brampton and Windsor plants for electrified vehicles.
  • On November 12, 2026, Industry Minister Mélanie Joly declared Stellantis in default, giving it 30 days to fix the breaches or face legal action.
  • Stellantis has offered to repay C$24 million; Ottawa says the company could owe substantially more, and Carney calls the sale a betrayal of workers.
  • Carney says any trade deal must preserve a viable Canadian auto sector; Canada and Washington have resumed trade talks suspended in August.

Reactions

  • Joly tells reporters in Toronto, 'We sent a notice of default and, basically, they have 30 days — or else, of course, we will sue them.'
  • Carney calls the Brampton sale 'unacceptable' and a 'betrayal' of workers, and warns he will not accept a trade deal that threatens Canada's auto industry.
  • Unifor President Lana Payne calls the sale a 'betrayal' and the worst-case scenario for the more than 2,200 laid-off workers.
  • Conservative Leader Pierre Poilievre demands Joly's dismissal and the release of the 2022 funding agreement's details.
  • Roshel says the Brampton site could eventually support more than 2,000 jobs, with priority hiring for former Stellantis employees.
  • Stellantis shares closed down 6.08 per cent on November 12, and Milan-listed shares are down more than 60 per cent in 2026.

Related

Timeline newest first

  1. Mark Carney says any US trade deal must keep a viable Canadian auto sector, and confirms an 'aggressive package' with Ontario to persuade Stellantis over the Brampton plant sale.
  2. Carney says Canada suspended trade talks with Washington in August over unacceptable last-minute demands, and the two countries have since resumed discussions.
  3. Washington has imposed 50 per cent tariffs on about $20 billion in Canadian goods; Canada imposed retaliatory tariffs in September.
  4. Carney says he held a lengthy call with President Donald Trump before departing for Asia; US Treasury Secretary Scott Bessent says he is optimistic about a trade deal.
  5. Industry Minister Mélanie Joly serves Stellantis Canada CEO Trevor Longley a notice of default on the 2022 federal funding agreement, ending its dispute-resolution process.
  6. Ottawa issues an earlier notice of default to Stellantis on December 4, 2025.
  7. Joly says Stellantis has 30 days to address the breaches or Canada will sue to recover hundreds of millions of dollars.
  8. Joly's letter says the planned sale to Roshel shows Stellantis is no longer diligently working in good faith.
  9. Mark Carney calls the Brampton sale a 'betrayal' of the more than 2,000 laid-off workers on 10 November 2026.
  10. Stellantis and Roshel sign a memorandum of understanding on the potential Brampton sale in September 2026.
  11. Unifor chair Ardis Snow says about 2,200 Brampton workers remain on layoff at 70 per cent of their pay, nearly three years after production stopped.
  12. Stellantis moves planned Jeep Compass production to Belvidere, Illinois, after pausing the Brampton retooling in early 2025, following US tariffs of 25 per cent on Canadian-made cars.
  13. Stellantis idles the Brampton plant in late 2023 to retool it for the Jeep Compass, sending home almost 3,000 workers.
  14. Three sources say the Carney government held more than a dozen meetings with Stellantis and Roshel before the sale announcement and did not stand in the deal's way.
  15. Stellantis and Roshel announce an agreement to sell the idled Brampton assembly plant for an undisclosed amount, with closing expected by the end of 2026.
  16. In May 2022, the federal government agrees to provide Stellantis $529 million to retool its Brampton and Windsor plants.
  17. In August 2026, Unifor says it received notice that Stellantis was considering the closure and sale of the Brampton plant.
  18. In October 2026, 97.3 per cent of Unifor-represented Stellantis workers in Canada vote for a strike mandate amid impassed contract talks.

Sources newest first

  • Carney draws red line on Trump trade deal over auto jobsnewsweek.com· 9h

    A Newsweek article reports that Prime Minister Mark Carney, speaking at an ASEAN summit press conference in Manila, says Canada will not accept a trade deal with Donald Trump that threatens its auto industry, as Ottawa fights Stellantis' sale of its Brampton plant and weighs legal action over abandoned Jeep Compass production that laid off more than 2,000 workers. Carney calls a viable Canadian auto sector a condition of any agreement, while Industry Minister Mélanie Joly says Stellantis cannot close the plant and Pierre Poilievre demands her dismissal.

  • Canada Declares Stellantis in Default on Up to C$529 Million of Aid247wallst.com· 27h

    247wallst.com reports that Canada's Industry Minister Mélanie Joly served Stellantis a notice of default on its 2022 funding agreement on November 12, 2026, ending the dispute-resolution process and giving the automaker 30 days to fix breaches, after the Brampton plant was sold to Roshel. Ottawa committed up to C$529 million for retooling Brampton and Windsor for electrified vehicles, and Joly said Ottawa is ready to sue to recover hundreds of millions, while Stellantis disputes Ottawa's view. The outlet sees likely outcomes of a negotiated settlement, a termination with repayment demand, or a lawsuit, with a Unifor strike mandate adding risk to the automaker's thin North American margins.

  • ‘We will sue them’: Canada threatens Stellantis as Trump trade war reshapes Jeep production planscnbc.com· 36h

    Canada threatens to sue Stellantis after it agreed to sell its idled Brampton, Ontario, Jeep plant to Roshel and moved Compass production to Illinois amid Trump's trade war. Industry Minister Mélanie Joly says the company has 30 days to answer a notice of default, while Stellantis CEO Trevor Longley offers to return $24 million in government support, far short of what Ottawa says it is owed, and Prime Minister Mark Carney calls the move a "betrayal" of workers.

  • Industry minister terminates resolution talks with Stellantis over Brampton auto plant sale | CBC Newscbc.ca· 2d

    Industry Minister Mélanie Joly has terminated resolution talks with Stellantis and declared the automaker in default of its 2022 funding agreement after it announced plans to sell its Brampton plant to armoured vehicle maker Roshel, giving it 30 days to take corrective action or face clawing back subsidies of at least $220 million. Prime Minister Mark Carney called the sale "a betrayal" of more than 2,000 laid-off workers, while Conservative Leader Pierre Poilievre demands the deal's details be made public and Joly's removal.

  • Sale of Brampton auto plant from Stellantis to Roshel leaves laid-off workers in the lurchtheglobeandmail.com· 2d

    A Globe and Mail report says Stellantis sold its idled Brampton, Ontario auto plant to defence contractor Roshel Inc., ending 40 years of automaking there and leaving about 2,200 laid-off workers with little prospect of return after the Jeep Compass was moved to Illinois. Industry Minister Mélanie Joly's office says Stellantis violated the terms of a 2022 agreement that gave it up to $529-million in taxpayer money, while union chairperson Ardis Snow calls the news devastating and Prime Minister Carney labels the sale outrageous.

  • Carney government actively involved in talks leading to Stellantis plant sale: sourcesctvnews.ca· 3d

    CTV News reports that, per three sources, the Carney government was actively involved in private talks with Stellantis and Roshel before Stellantis sold its idle Brampton plant to the armoured-vehicle maker, even as Prime Minister Mark Carney publicly called the sale a "betrayal" of workers and Industry Minister Melanie Joly expressed disappointment. The federal government gave Stellantis up to $529 million in 2022 and was paid back an offered $24 million, while Roshel CEO Roman Shimanov says the deal will go through and Stellantis will lease back 25 per cent of the plant.

  • Stellantis announces sale of Brampton assembly plant. Union calls it a ‘betrayal’ctvnews.ca· 4d

    Stellantis has agreed to sell its Brampton assembly plant to defence technology company Roshel for an undisclosed amount, prompting Unifor to call the sale a betrayal and describe it as a worst-case scenario for the more than 2,200 workers on layoff since December 2023. The plant, which built the Dodge Charger and Challenger until 2023, received $529 million in federal retooling funding in 2022, and Stellantis plans to move Jeep Compass production to Illinois while Industry Minister Mélanie Joly convenes meetings and Mayor Patrick Brown says the company owes taxpayers and workers.

  • Stellantis signs deal to sell Brampton, Ont., assembly plant to Canadian armoured vehicle maker | CBC Newscbc.ca· 5d

    CBC News reports that Stellantis has agreed to sell its idled Brampton, Ontario, assembly plant — idled since 2023, when more than 2,000 workers were laid off — to Canadian armoured vehicle maker Roshel Inc. for an undisclosed amount, as contract talks between Stellantis and Unifor, whose members voted 97.3 per cent for a strike mandate, remain at an impasse. Unifor president Lana Payne calls the sale a worst-case scenario and betrayal of workers, while Industry Minister Mélanie Joly, Trade Minister Maninder Sidhu, and Brampton Mayor Patrick Brown press Stellantis to honour its commitments, with Joly calling a meeting for the week of 9 November 2026.

Background newest first

  • Ford letter to PM: Chinese EV kits must not be assembled at Brampton plantctvnews.ca· 3d

    Ontario Premier Doug Ford is urging Prime Minister Mark Carney to ensure Chinese-made EV kits are not assembled at the Stellantis Brampton plant, which was sold to defence manufacturer Roshel on November 9, 2026. In a letter obtained by CTV News, Ford warned of over 7,500 direct job losses in Brampton and wrote, "We cannot undermine the future of Canada and Ontario's automotive sector," while Unifor, opposing the sale, accused Stellantis of betraying workers, and sources say Stellantis plans to re-lease part of the plant to assemble affordable EVs.

  • Global News | Breaking, Latest News and Video for Canadaglobalnews.ca

    Global News' homepage leads with the deadly fire at CFB Wainwright, where at least 4 people died, 15 soldiers are on ventilators, and a senior Alberta official gave the outlet a confidential briefing after a week of unanswered questions to National Defence. It also covers Alberta's $84 million separatism referendum, an Nvidia CEO scandal over an alleged China spy, Biden's memoir, and the Alouettes' Grey Cup matchup with Edmonton.