On Tuesday, Prime Minister Mark Carney referred to Stellantis’ recently confirmed intentions to divest an automotive assembly facility in Brampton, Ontario, as “a betrayal” of the global manufacturer’s “responsibilities to Canada and, by extension, to all Canadians.”
However, a previously acquired version of the multi-million-dollar funding agreement between Stellantis and the federal government indicates that the automaker had an exit strategy regarding the closure of the Brampton facility.
The 2022 contract copy, obtained by CBC News earlier this year, is partially obscured, preventing visibility of all terms.
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Nevertheless, a clause introduced in the 2023 agreement explicitly states that closing the Brampton facility before 2035 would breach the contract unless factors beyond the automaker’s “reasonable control” rendered the location “commercially unfeasible,” and Stellantis failed to provide “substantial evidence that it has promptly exerted all reasonable commercial efforts to secure alternative mandates for Brampton.”
In simpler terms, if Stellantis can demonstrate “substantial evidence” of its attempts to explore other avenues for the Brampton site, it may not violate the agreement, under which the company has received over $220 million in federal support 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 be relocating vehicle production to the U.S. (Evan Mitsui/CBC)
The specific wording regarding Stellantis’ contractual obligations with Ottawa has resurfaced in political discussions since Monday, when the automaker announced its plans to transfer the Brampton facility to defense contractor Roshel.
Windsor West MP Harb Gill, who is the Conservative shadow minister overseeing the auto industry, asserts that the language in the agreement concerning conditions beyond Stellantis’ “reasonable control” needs clarification.
“Clearly, Stellantis will claim it was due to tariffs or trade wars and similar issues,” Gill commented on Tuesday. “However, what kind of proof or documentation did the government require to justify why it is not commercially viable? Explain how it’s not feasible since you’re still producing or merely shifting production from Canada to the U.S. and continuing to sell the same product.”
Harb Gill, the Conservative MP for Windsor West, in Windsor, Ont., in July 2026. (Samantha Craggs/CBC)
The federal government did not respond on Tuesday to inquiries regarding the rationale behind agreeing to that language or whether Stellantis has claimed that tariffs have rendered the plant commercially unviable.
For its part, Stellantis stated that the company “will not comment on specific legal interpretations or discussions with the government while these matters are being addressed.” The spokesperson also emphasized that the sale of the facility to defense contractor Roshel is not finalized; instead, the parties have entered into an asset purchase agreement, representing “a step toward the proposed transaction.”
Last year, Stellantis announced it would be relocating the production of the Jeep Compass from Brampton to Belvedere, Illinois, triggering a political uproar regarding the public funds the company has received.
In December, Industry Minister Mélanie Joly indicated that the federal government would issue a notice of default to Stellantis regarding its contracts with Ottawa.
Stellantis was also involved in funding agreements worth billions with the NextStar Energy battery plant in Windsor, which was previously a joint venture between the automaker and LG Energy Solution. However, Stellantis divested its interest in the project earlier this year.
The current status of the formal contractual dispute concerning Brampton remains unclear. When asked about it on Tuesday, a spokesperson for the federal industry department stated that “for over a year, [the] government and Unifor have worked in good faith to reach a resolution, yet Stellantis has once again opted to breach the commitments it made.”
“This is a direct betrayal of Brampton workers and its obligations to Canadians,” the spokesperson added.
“As the Prime Minister has made clear, our government will utilize every resource available and the full weight of the law to uphold our rights, protect Canadian taxpayers, and advocate for justice and jobs for these workers.”
A source with firsthand knowledge of the sale of the Stellantis Brampton facility mentioned that the federal government has been actively involved in discussions regarding the deal since August. The source indicated that both the Prime Minister’s Office and Industry Minister Melanie Joly’s office had been informed of the details ahead of the announcement. CTV News initially reported on the government’s participation in the discussions, citing three unnamed sources.
Stellantis’s decision to sell its Brampton, Ontario, automotive assembly plant to defense vehicle producer Roshel has resulted in immediate political repercussions, with Conservative Leader Pierre Poilievre calling for the dismissal of Industry Minister Mélanie Joly, even as the company repays its federal funding. Power & Politics interviews Kyle Seeback, the Conservative Party’s labour critic.
In a statement on Monday confirming the sale agreement, Stellantis CEO Antonio Filosa remarked that the automaker is “creating new prospects for Stellantis in the defense sector and establishing a pathway to return the Brampton facility to productive industrial usage.”
The announcement has triggered criticism from opposition MPs and Unifor, which represents over 2,000 unionized workers at the Brampton plant, who have faced layoffs since 2023.
On Tuesday, Stellantis acknowledged “that Canadians anticipate accountability for public funding” and noted that the company “has proposed to voluntarily return the government support provided for Brampton Assembly’s original retooling initiative.”
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However, the company did not disclose the amount of funding it intends to return or the timeline for doing so, citing confidentiality clauses in the agreements.
The industry department stated that Joly “will hold a meeting in Toronto” on Thursday with Stellantis executives, Unifor National President Lana Payne, and the provincial government.
Payne’s office declined a request for an interview on Tuesday but informed CBC’s Power and Politics that the government still possesses options to halt the sale of the Brampton facility — and uncovering the conditions of the sale will be crucial.
“What was required here was for the government to maintain its position,” said Payne, whose union has reached a deadlock with Stellantis in their latest round of contract negotiations. “We have already observed conditions for this trade conflict shifting in the U.S.”
Gill, for his part, has indicated that Conservatives on the House industry committee will seek to investigate the Stellantis situation and invite Joly to appear before the panel shortly.