Canada Threatens Stellantis With Lawsuit Over Brampton Plant Sale
Canada has given Stellantis 30 days to resolve a dispute over the Brampton plant sale or face a lawsuit. The automaker plans to shift production to the U.S. amid trade pressures from President Donald Trump.
Canada has threatened legal action against Stellantis over the planned sale of an idle assembly plant in Brampton, Ontario, alleging a breach of a federal funding agreement. The move comes after the automaker announced plans to shift production to the United States amid trade pressures from U.S. President Donald Trump.
Canadian Industry Minister Mélanie Joly announced during a press conference in Toronto that the government has issued a formal notice to Stellantis, giving the company 30 days to address federal concerns or face legal proceedings. Joly stated that Stellantis breached its contractual commitments to the Canadian government and plant workers by announcing an agreement to sell the facility to armored vehicle manufacturer Roshel. She added that the company could face hundreds of millions of dollars in penalties.
Canadian Prime Minister Mark Carney described the situation at the Brampton plant as unacceptable and a betrayal of its workforce. The dispute unfolds against the backdrop of a trade deadlock between Canada and the United States, as President Trump pressures automakers to relocate more production activities to American soil. Stellantis scrapped its plan to manufacture Jeep Compass vehicles at the Brampton plant, transferring future production to a facility in Illinois due to U.S. tariffs and shifting market conditions.
Stellantis Canada CEO Trevor Longley stated that the company will return $24 million in federal subsidies following the announcement of the Brampton plant sale, an amount falling short of the government's estimate of the firm's liabilities. Longley acknowledged the disappointment and uncertainty surrounding the plant's future, noting that the agreement with a Canadian vehicle manufacturer provides a pathway to restoring activity at the site.
Stellantis confirmed its agreement to sell the facility to Roshel for an undisclosed sum and expressed readiness to engage with Unifor, Canada's largest private-sector union, to discuss arrangements supporting affected workers. Meanwhile, Stellantis shares have declined sharply, with Milan-listed stock dropping by more than 60% so far in 2026.
