Feds serve Stellantis with notice of default amid Brampton plant sale

Ottawa has served Stellantis with a notice of default on its federal funding agreement after the automaker signed a deal to sell its Brampton assembly plant.

“By announcing its intent to sell the Brampton plant, Stellantis is in breach of its contractual commitments to the government, to Canadians and to the workers at Brampton,” says Federal Industry Minister Melanie Joly.

Joly says Stellantis has 30 days to demonstrate it will correct these conditions or face penalties, including refunding “hundreds of millions of dollars” in government funding.

The notice follows a key meeting Thursday between the automaker, Joly and auto-worker union Unifor.

Stellantis announced on Monday it was selling its long-idled Brampton assembly plant to Canadian armoured vehicle manufacturer Roshel.

During his visit to Ireland Thursday, Prime Minister Mark Carney said the sale is only a partial solution, and responded to reporting that the government was involved in the deal.

“The issue for Stellantis is providing a global solution for the plant. So, the Rochel deal is a partial solution for the thousands of workers there. So, being informed or being aware of some aspects is not the same as Stellantis providing a global solution for those workers at the plant. Which is their obligation,” says Carney.

Carney had previously called the sale a “betrayal.”

More than 2,000 workers have been laid off since 2023.

READ MORE: Joly set to hold meeting in Toronto with Stellantis, union and Ontario minister