Industry Minister Mélanie Joly speaks to the media at the Sheraton Center Toronto Hotel after the sale of Stellantis on November 12, 2026.
Sophie Bouquillon | Toronto Star | Getty Images
Canada threatens to sue auto giant Stellantis The company alleges a plan to sell a dormant assembly plant in Brampton, Ont., violates federal funding agreements after the automaker announced plans to move production to the United States amid President Donald Trump’s trade war.
Industry Minister Mélanie Joly said at a press conference on Thursday that the government had given Stellantis a formal notice of default and given the company 30 days to address concerns or take legal action.
“We sent them a notice of default. Basically, they have a 30-day grace period. If not, of course we will sue them,” Jolie told reporters in Toronto.
Jolly said Stellantis breached its contractual commitments to the Canadian government and workers at the Brampton plant by announcing an agreement to sell the factory to armored vehicle manufacturer Rochelle earlier in the week. He added that the company is now “at risk” of hundreds of millions of dollars with the move.
Canadian Prime Minister Mark Carney called the conditions at the Brampton plant “unacceptable” and a “betrayal” of workers.
The standoff comes as the United States and Canada remain embroiled in a bitter trade dispute, with President Trump repeatedly pressuring automakers to move vehicle production south of the border.
Stellantis, which owns auto brands such as Dodge, Fiat, Chrysler and Peugeot, has scrapped plans to build the Jeep Compass at its Brampton plant and moved future production to a plant in Illinois amid U.S. auto tariffs and other market pressures.
Stellantis Canada CEO Trevor Longley said in a statement shared with CNBC that the company will return the $24 million it received in government support for Brampton Council’s original renovation project. However, this amount is significantly lower than the Canadian government’s own estimate of the company’s debt.
Stellantis’ New York-listed stock since the beginning of the year.
“We recognize the disappointment and uncertainty surrounding the future of the facility. While our decision to sell the plant represents a change from Brampton’s original plans, the agreement we have advanced with the Canadian manufacturer provides a pathway to return the facility to productive industrial use,” Longley said.
“As Canada’s largest automotive employer, this decision allows Stellantis to focus its resources on maintaining a competitive manufacturing operation in Canada in the face of difficult market realities,” he added.
Jeep Grand Cherokee SUV at dealership in Mississauga, Ontario, Canada on Friday, October 17, 2025.
Bloomberg | Bloomberg | Getty Images
Stellantis announced Monday that it has agreed to sell its Brampton assembly plant to Rochelle for an undisclosed amount.
It also acknowledged its obligations to the facility’s employees and said it remains prepared to work with Unifor, Canada’s largest private labor union, to negotiate a settlement to support unionized employees.
Stellantis’ stock price has fallen sharply since the beginning of the year, with the Milan-listed stock down more than 60% in 2026 so far.
—CNBC’s Michael Wayland contributed to this report.
