OTTAWA: The Canadian federal government is threatening legal action against Stellantis over the automaker’s move to sell its assembly plant in Brampton, Ontario, to defence contractor Roshel. Industry Minister Mélanie Joly warned that the proposed sale constitutes a blatant breach of the company’s 2022 federal funding agreement, giving Stellantis a one-month ultimatum to resolve the dispute or face a lawsuit to recover all disbursed funds with interest.
According to Joly, halting production of the Jeep Compass, refusing to allocate a replacement vehicle to the facility, and shuttering the plant all violate the terms of the federal contract. She emphasized that Ottawa cannot accept the automaker moving forward unilaterally with the sale after a year of government efforts to negotiate a solution. If the company fails to reverse course within the 30-day deadline, the federal government intends to terminate the funding agreement entirely.
The stern warning follows high-level discussions in Toronto involving Joly, Stellantis Canada CEO Trevor Longley, representatives from the Unifor labour union, and Ontario Premier Doug Ford. With the ultimatum, Ottawa is sending a clear message that it will take uncompromising measures to enforce its industrial agreements and protect Canadian auto workers.
