On Tuesday, Prime Minister Mark Carney criticized Stellantis’ recently confirmed intention to sell an automotive assembly facility in Brampton, Ontario, labeling it “a betrayal” of the global automaker’s “commitments to Canada and, by extension, to all Canadians.”
However, a copy of the multi-million-dollar funding agreement between Stellantis and the federal government, acquired earlier this year, indicates that the car manufacturer had an escape clause regarding the closure of the Brampton facility.
The 2022 agreement, which was obtained by CBC News earlier this year, is partially redacted, leaving some terms unclear.
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Nevertheless, a clause added in 2023 explicitly states that closing the Brampton facility before 2035 would breach the contract unless factors beyond the automaker’s “reasonable control” rendered the plant “commercially unviable,” and Stellantis failed to provide “substantial evidence” of having promptly made all reasonable commercial efforts to secure alternative operations for Brampton.
In simpler terms, if Stellantis could demonstrate “substantial evidence” of its attempts to explore other options for Brampton, it might not be considered in breach of the agreement, under which the company has received at least $220 million in federal funding for its operations in Brampton and Windsor, Ontario.
The Brampton Assembly Plant, in Brampton, Ont., is depicted on Oct. 15, 2025 — the day Stellantis revealed it would shift vehicle production to the U.S. (Evan Mitsui/CBC)
The specific wording regarding Stellantis’ obligations to Ottawa has resurfaced in the political discourse since Monday, when the automaker announced its intention to sell the Brampton facility to defense contractor Roshel.
Harb Gill, MP for Windsor West and the Conservative shadow minister overseeing the automotive sector, asserts that the language in the agreement concerning circumstances outside Stellantis’ “reasonable control” should be more precise.
“Clearly Stellantis will argue it was tariffs or the trade war and similar issues,” Gill stated Tuesday. “But what kind of proof or evidence did the government ask in return to explain why this is not commercially viable? Clarify how it isn’t viable when you’re still producing or merely shifting production from Canada to the U.S., while selling the same product.”
Harb Gill, the Conservative MP for Windsor West, is shown in Windsor, Ont., in July 2026. (Samantha Craggs/CBC)
On Tuesday, the federal government did not respond to inquiries regarding why it accepted that language or whether Stellantis argued that tariffs have rendered the plant commercially unviable.
For its part, Stellantis stated that it is “not providing comments on specific legal interpretations or discussions with the government while those matters are under consideration.” A representative also mentioned that the sale of the facility to defense contractor Roshel is not finalized; the parties have merely signed an asset purchase agreement, which is “a step toward the proposed transaction.”
Last year, Stellantis revealed its plans to relocate the Jeep Compass production from Brampton to Belvedere, Illinois, igniting political controversy over the public funding the firm has received.
In December, Industry Minister Mélanie Joly announced that the federal government would issue a notice of default to Stellantis regarding its contracts with Ottawa.
Stellantis was also involved in funding agreements reaching billions for the NextStar Energy battery facility in Windsor, which was initially a joint venture with LG Energy Solution. However, Stellantis divested its interest in the project earlier this year.
The exact status of the formal dispute process regarding the Brampton facility remains uncertain. When asked about it Tuesday, a spokesperson from the federal industry department noted that for “over a year, [the] government and Unifor have been negotiating in good faith to reach a resolution, yet Stellantis has again opted to breach its commitments.
“This represents a direct betrayal of Brampton employees and their obligations to Canadians,” the spokesperson added.
“As the Prime Minister has made clear, our government will utilize every tool available and the full extent of the law to enforce our rights, protect Canadian taxpayers’ dollars, and advocate for justice and jobs for these workers.”
A source with direct knowledge of the sale of the Stellantis Brampton facility stated that the federal government has been consistently involved in the negotiations since August. This source indicated that both the Prime Minister’s Office and Industry Minister Melanie Joly’s office were briefed on the details of the forthcoming announcement. CTV News first reported on the government’s participation in the discussions, citing three unnamed sources.
Stellantis’s choice to sell its Brampton, Ont., auto assembly facility to defense vehicle manufacturer Roshel has triggered immediate political repercussions, with Conservative Leader Pierre Poilievre demanding the firing of Industry Minister Mélanie Joly even as the company repays its federal support. Power & Politics discusses with Kyle Seeback, the Conservative Party’s labour critic.
In a statement on Monday confirming the purchase agreement, Stellantis CEO Antonio Filosa mentioned that the automaker is “creating new opportunities for Stellantis in the defense sector, paving the way for the Brampton facility to be used for productive industrial purposes again.”
The announcement has drawn criticism from opposition MPs and Unifor, representing over 2,000 unionized employees at the Brampton plant who have faced layoffs since 2023.
On Tuesday, Stellantis acknowledged that “Canadians expect accountability for public funding” and stated that the company “has proposed to voluntarily return the government assistance received for the original retooling plan at Brampton Assembly.”
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However, the company did not disclose how much of the funding it plans to return or the timeline for the return, citing confidentiality clauses in the agreements.
The industry department announced that Joly “will hold a meeting in Toronto” on Thursday with Stellantis executives, Unifor National President Lana Payne, and provincial officials.
Payne’s office declined to participate in an interview on Tuesday, but informed CBC’s Power and Politics that the government still has avenues to block the Brampton plant sale — and understanding the sale’s conditions will be crucial.
“All we needed was for the government to maintain its position,” said Payne, whose union is currently in a deadlock with Stellantis in their latest round of collective bargaining. “We have already seen conditions for this trade conflict changing in the U.S.”
Gill, on his part, stated that Conservatives on the industry committee in the House will seek to investigate the Stellantis matter and call Joly to testify before the panel soon.
