Canada Gives Stellantis 30 Days to Cure Alleged Funding Breach Over Brampton Plant Sale or Face Lawsuit

Since Stellantis announced on Monday, Nov. 9, that it would sell its idled Brampton assembly plant to armored-vehicle maker Roshel, the dispute with Ottawa has escalated from public anger to a formal legal step. On Thursday, Nov. 12, Industry Minister Mélanie Joly said the federal government had served the company with a notice of default.

"We sent a notice of default and, basically, they have 30 days, or else, of course, we will sue them," Joly told reporters in Toronto.

Counting from Thursday's announcement, the window closes around mid-December.

What Ottawa says Stellantis broke

Joly said Stellantis violated its funding agreement by abandoning production at Brampton without identifying a replacement vehicle. She also said the company breached commitments to the federal government and to the plant's workers.

"Stellantis is on the hook for hundreds of millions of dollars," Joly said.

The money in question traces to 2022. Canada committed up to C$529 million (US$380 million) to help Stellantis retool its Brampton and Windsor plants for electric vehicle production.

Stellantis had planned to build the Jeep Compass at Brampton. It scrapped that plan and moved future production to a plant in Illinois, amid U.S. auto tariffs and other market pressures. More than 2,000 Canadian workers are without jobs as a result.

Prime Minister Mark Carney has called the situation "unacceptable" and a "betrayal" of Brampton's workers. He described the Roshel sale as a partial solution that does not fulfill the company's obligations.

Stellantis's position and the money gap

Stellantis has not publicly responded to the default notice. A spokesperson was not immediately available for comment Thursday evening or Friday morning.

The company has made its case on other terms. Stellantis Canada CEO Trevor Longley said the sale "represents a change from the original plans for Brampton," but argued that the agreement with a Canadian manufacturer "provides a path to return the facility to productive industrial use," according to CBC News.

Stellantis has said it offered to repay government funding received for the Brampton project but declined to disclose the amount. Longley reportedly said Thursday that the company would return $24 million in federal subsidies. That is far below what Ottawa says is owed.

The sale price to Roshel has not been disclosed. Stellantis has also said it is prepared to work with Unifor, Canada's largest private-sector union, on a settlement for union-represented employees.

The union and the next meetings

Unifor President Lana Payne said a Thursday meeting with Stellantis, the union and both governments produced no resolution. She said the time to block the sale had passed.

"The time to stop that was last week, the week before and the week before that," Payne said. "Now we're going to a different situation. We can't stop the sale. The sale has occurred, so we would have to reverse it, which is doubly difficult, obviously."

Joly said federal and Ontario officials plan to meet with Stellantis' global chief executive. No date has been given.

Tariffs, subsidies and the stakes

The backdrop is the U.S.-Canada trade fight. Trump's tariffs have pressured Canada's auto sector, which is deeply integrated with U.S. manufacturing, and Trump has repeatedly pushed automakers to build vehicles south of the border. Stellantis moved Compass output amid those conditions.

The episode shows how fragile a deal built on subsidies can be when tariffs change where cars get made. Canadian taxpayers put up as much as C$529 million for retooling. The Brampton plant is idle, and the company's refund offer is being measured against a government claim many times larger.

Autos are Canada's second-largest export. Carney has noted the sector directly employs 125,000 Canadians and supports almost 500,000 more jobs in related industries.

Investors have also been selling. Stellantis shares closed at $3.86 in New York on Thursday, down 6.1% on the day, after falling 3.6% Tuesday and 3.5% Wednesday. That is 12.7% below Monday's close of $4.42. Its Milan-listed shares are down more than 60% so far in 2026. No source has tied the price moves specifically to the Brampton dispute.

The open question is the number. If Stellantis does not cure the alleged breaches within 30 days, Ottawa says it will sue, and a court would have to decide whether the company owes $24 million, hundreds of millions, or something in between.