Industry Minister Mélanie Joly says Stellantis could face repayment demands of “hundreds of millions of dollars” if it fails to meet its obligations under a federal funding agreement, following its decision to sell its Brampton, Ont., plant to defence contractor Roshel.
Stellantis said in a Nov. 12 media statement that it was willing to repay $24 million in federal support it received for plans to retool its Brampton facility. The company paused its retooling plans in February 2025 before later announcing it would move production of the Jeep Compass to the United States.
“They cannot close the plant. We said that if they would, we would sue them,” Joly told reporters on Nov. 13 in Woodbridge, Ont. “That is why I sent a letter of notice yesterday, and they’re on the hook for hundreds of millions of dollars.”
Joly’s Nov. 12 letter said Stellantis had breached the conditions of a 2022 federal funding agreement by abandoning plans to manufacture the Jeep Compass in Brampton, failing to select a replacement vehicle for production, and leaving the plant idle.
The industry minister gave Stellantis 30 days to demonstrate it would “correct these conditions,” or Ottawa could formally declare the company in default. Potential penalties include terminating the funding agreement and requiring Stellantis to repay all or part of the federal funding it received, with interest.
The Brampton factory closed for retooling in early 2024 in preparation for Jeep production. Stellantis paused the work in February 2025 amid uncertainty in the North American automotive market and later announced it would move production of the Jeep Compass to Illinois. The company announced on Nov. 9 that it had signed an agreement to sell its plant and associated equipment to Canadian armoured vehicle maker Roshel for an undisclosed amount.
Stellantis said in a Nov. 10 statement that it was willing to pay back federal funds it received to retool the Brampton plant, noting that it had not received the $15 billion originally earmarked for battery-production incentives at the NextStar Energy plant in Windsor.
The federal government committed up to $529 million in 2022 to help Stellantis retool its Brampton and Windsor facilities to produce electrified vehicles. Separately, Ottawa and Ontario provided support for the NextStar Energy battery plant in Windsor, where Stellantis held a 49 percent stake with LG Energy Solution. Stellantis announced in February 2026 that it would sell its stake to LG Energy Solution, which would take full ownership of the facility.
Joly said Ottawa had presented Stellantis with an “aggressive package” to stop the sale of the Brampton plant and was in “solution mode” to prevent it. She said the government would offer new options to Stellantis CEO Antonio Filosa and was “looking forward to having these conversations with him.”
Ontario Economic Development Minister Vic Fedeli told reporters alongside Joly in Woodbridge that Stellantis should “buy some time” and keep the factory “warm” while Ottawa and Ontario search for a solution.
Prime Minister Mark Carney told reporters on Nov. 12 that he knew about some aspects of Stellantis’ factory sale agreement before it was finalized. He accused the company of “betraying” its workers and said his government would pursue a remedy.
Conservative Leader Pierre Poilievre has called on the prime minister to release the details of the deal Ottawa signed with Stellantis and said Carney should fire Joly, while accusing her of failing to protect Canadian automotive jobs. Carney defended the industry minister, saying she had done “exceptional work” and that the issue was with the “behaviour of the company.”
