Canada gives Stellantis 30 days over Brampton plant deal

Canada has given Stellantis 30 days to address alleged breaches of a federal funding agreement after the automaker agreed to sell its idled Brampton, Ontario, assembly plant to Roshel. Industry Minister Mélanie Joly said the government may sue if the company does not resolve the alleged default.

Joly said Ottawa served Stellantis with a formal notice of default on Thursday, November 12. The notice concerns a 2022 agreement under which the federal government committed up to C$529 million to help Stellantis retool its Brampton and Windsor facilities for electrified-vehicle production. Ontario separately committed C$513 million in support, according to the notice’s reporting.

Joly’s letter alleges that Stellantis breached the agreement by halting Jeep Compass production at Brampton, not identifying a replacement vehicle, failing to maintain production and closing the plant. The company has 30 days to show that it will correct the conditions, she said. The notice warns that Ottawa could terminate the funding agreement and seek repayment of some or all federal funds received, plus interest.

Stellantis said it has offered to return federal support received for Brampton’s original...