TORONTO — Industry Minister Mélanie Joly sent a formal notice of default to Stellantis Canada CEO Trevor Longley on Thursday, ending the dispute-resolution process under the 2022 funding agreement and declaring the company in breach.
In the letter, Joly wrote that Stellantis is “no longer diligently working in good faith” after signing a deal to sell the idled Brampton Assembly Plant to defence contractor Roshel.
She listed the breaches as halting Jeep Compass production, failing to name a replacement vehicle, maintaining no production at the facility, and the closing of the plant.
Speaking to reporters after a meeting with the company, Unifor, and Ontario officials, Joly said she was “fed up” and that “patience has its limits.” She confirmed the company now has 30 days under the notice of default. “Or else. Of course we’ll sue them,” she said. She added that the federal and Ontario governments will next meet with Stellantis global CEO Antonio Filosa.
Stellantis has 30 days to demonstrate it will correct the conditions. If it does not, Ottawa can terminate the agreement and recover all or part of the money paid, plus interest.
The 2022 deal committed up to $529 million in federal spending for retooling at Brampton and Windsor. Stellantis has said it will repay the Brampton retooling support voluntarily, citing confidentiality provisions for the exact figure.
Joly said the government has contractual levers to recover the money and will use them, but noted this case is different from Investment Canada Act reviews involving foreign buyers.
The primary remedy remains suing for repayment of the subsidies. When a reporter asked if the contract allows a sale if the plant is not commercially viable, she rejected the idea and said her consistent message to Stellantis was that selling the plant would put them “on the hook.”
Asked by The Western Standard whether the federal government would block any plan to assemble Chinese electric vehicle kits at the Brampton site, Joly said: “I’ve already said that we wouldn’t agree to assembly of Chinese kits in Canada. So knockdown kits are not on the table here.”
Stellantis idled the Brampton plant in 2023 for retooling that was meant to support Jeep Compass production. That work was later paused, and the company moved the vehicle to Illinois after U.S. tariffs.
Roughly 1,800 workers remain on layoff and have been collecting 70% of their pay since 2023. Unifor has called the sale a betrayal and said the federal government should have acted sooner.
The full terms of the 2022 agreement have never been publicly released. Redacted copies obtained through access-to-information requests show production requirements running through 2035, with exceptions for circumstances beyond the company’s “reasonable control.” Conservative Leader Pierre Poilievre has called for the unredacted contracts to be released and for Joly to be fired.
The Roshel sale is expected to close by the end of 2026, subject to regulatory conditions. Roshel has said it intends to create a centre for advanced manufacturing at the site and has spoken of bringing back hundreds of the laid-off workers, though no firm numbers or timelines have been confirmed.