CP NewsAlert: Ottawa serves Stellantis notice of default on federal funding agreement
Written by The Canadian Press on November 12, 2026
TORONTO — Ottawa has served Stellantis with notice that the automaker breached the terms of a 2022 federal funding agreement, in a move that comes after the company sold its Brampton, Ont. assembly plant to defence contractor Roshel.
A letter from Industry Minister Mélanie Joly dated today says Stellantis is in default of the agreement because it halted Jeep Compass production at the plant, failed or refused to identify a replacement vehicle, did not maintain any production at the facility, and closed the plant.
Joly’s letter says Stellantis has 30 days to demonstrate it will “correct these conditions” or face penalties, which could include terminating the funding deal and requiring the company to repay all or part of the funding it has received.
The minister says she may supplement the notice of default with further breaches related to Stellantis’ sale of the plant to Roshel that was announced Monday and is expected to close by the end of this year.
The letter comes as Joly held a key meeting this afternoon in Toronto with Stellantis, the union representing its more than 9,000 workers in Canada and representatives of the Ontario government.
In 2022, the federal government committed up to $529 million to help Stellantis retool its Brampton and Windsor facilities to produce electrified vehicles, while the Ontario government committed $513 million in provincial support.
More coming.
Sammy Hudes, The Canadian Press