Ottawa serves Stellantis notice of default on funding agreement after Roshel deal

Summary

• Ottawa served Stellantis a notice of default on its 2022 federal funding agreement after the automaker signed a deal to sell its Brampton, Ont. assembly plant to defense contractor Roshel.
• Industry Minister Mélanie Joly cited breaches including halting Jeep Compass production, failing to identify a replacement vehicle, and closing the facility.
• Stellantis has 30 days to demonstrate it will correct these conditions or face penalties such as deal termination, repayment of funding plus interest, & legal action.
• The federal government provided up to $529 million in 2022 to retool Brampton & Windsor facilities for electrified vehicles, while Ontario committed $513 million.
• Production pauses began in early 2024, with operations officially halted in February 2025, leading to over 2,000 layoffs & an indefinite plant closure.
• Prime Minister Mark Carney described the Roshel deal as only a "partial solution" that fails to meet Stellantis's obligation to provide a global solution for workers.
• Conservative Leader Pierre Poilievre accused the federal government of negligence for not securing job guarantees in exchange for the hundreds of millions in taxpayer funding.
• Roshel CEO Roman Shimonov stated his company plans to hire back some former Stellantis employees & lease one-quarter of the site back to the automaker.
• Stellantis spokesperson LouAnn Gosselin confirmed the company offered to voluntarily return public funds received for the original retooling plan.
• Unifor National President Lana Payne condemned the sale as a "worst-case scenario" & a betrayal of commitments to protect autoworkers.