On Tuesday, Prime Minister Mark Carney criticized Stellantis’ recently confirmed intention to sell its automotive assembly facility located in Brampton, Ontario, calling it “a betrayal” of the global manufacturer’s “commitments to Canada and, consequently, to all Canadians.”
However, a copy of the extensive funding agreement between Stellantis and the federal government, which was obtained earlier, indicates that the automaker had an exit strategy regarding the closure of the Brampton facility.
The document from the 2022 agreement, acquired by CBC News earlier this year, is partially redacted, meaning not all conditions are visible.
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Nevertheless, a clause added to the agreement in 2023 explicitly states that closing the Brampton facility before 2035 would constitute a breach of contract if factors beyond the automaker’s “reasonable control” rendered the plant “commercially unviable,” and Stellantis failed to provide “substantial evidence” that it had 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 the Brampton site, it might not be held accountable for violating the agreement, under which the company has received a minimum of $220 million in federal support for its operations in Brampton and Windsor, Ontario.
The Brampton Assembly Plant, in Brampton, Ont., is pictured on Oct. 15, 2025 — the day Stellantis announced it would be moving vehicle production to the U.S. (Evan Mitsui/CBC)
The specific terms surrounding Stellantis’ contractual obligations with Ottawa have resurfaced in the political arena following Monday’s announcement, when the company acknowledged plans to transfer ownership of the Brampton facility to defence contractor Roshel.
Harb Gill, MP for Windsor West and Conservative shadow minister responsible for the automotive industry, stated that the wording within the agreement regarding circumstances outside Stellantis’ “reasonable control” requires further clarification.
“Clearly, Stellantis will claim it was due to tariffs or trade conflicts and similar issues,” Gill remarked on Tuesday. “But what type of proof or evidence did the government request to clarify why this isn’t commercially viable? Explain how it’s unviable when production is ongoing or merely shifting from Canada to the U.S., while selling the same product.”
Harb Gill, the Conservative MP for Windsor West, in Windsor, Ont., in July 2026. (Samantha Craggs/CBC)
On Tuesday, the federal government did not respond to inquiries regarding the reasoning behind its acceptance of that language or whether Stellantis has claimed that tariffs have rendered the plant unviable.
Stellantis stated that the company is “not providing comments on specific legal interpretations or discussions with the government while those matters are being resolved.” A spokesperson also highlighted that the sale of the facility to Roshel is not yet finalized; instead, the parties have entered into an asset purchase agreement, “a preliminary step toward the proposed deal.”
Last year, Stellantis revealed that it would be relocating the planned production of the Jeep Compass from Brampton to Belvedere, Illinois, igniting a political uproar over the public funding the company has received.
In December, Industry Minister Mélanie Joly announced that the federal government intends to issue Stellantis a notice of default concerning its contracts with Ottawa.
Stellantis was also involved in funding agreements totaling billions with the NextStar Energy battery manufacturing facility in Windsor, which was formerly a collaboration 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 over Brampton remains unclear. When asked about it on Tuesday, a spokesperson for the federal industry department stated that for “more than a year, [the] government and Unifor have been engaged in good faith to find a resolution, yet Stellantis has once again opted to disregard the commitments it made.
“This represents a direct betrayal of Brampton workers and their commitments to Canadians,” the spokesperson continued.
“As the Prime Minister emphasized, our government will utilize all available resources and the full extent of the law to uphold our rights, protect Canadian taxpayer funds, and advocate for justice and jobs for these workers.”
A source familiar with the sale of the Stellantis Brampton facility indicated that the federal government has been consistently involved in discussions regarding the deal since August. This source mentioned that both the Prime Minister’s Office and Industry Minister Melanie Joly’s office had been updated on the details of the upcoming announcement. CTV News was the first to report on the government’s participation in the negotiations, citing three unnamed sources.
Stellantis’s decision to sell its Brampton, Ont., auto assembly plant to defence vehicle manufacturer Roshel has sparked immediate political fallout, with Conservative Leader Pierre Poilievre calling for Industry Minister Mélanie Joly to be fired even as the company repays its federal funding. Power & Politics speaks with Kyle Seeback, the Conservative Party’s labour critic.
In a statement released on Monday confirming the purchase agreement, Stellantis CEO Antonio Filosa mentioned that the automaker is “opening new avenues for Stellantis in the defence sector and is creating a pathway to return the Brampton facility to productive industrial use.”
The announcement has led to criticism from opposition MPs and Unifor, the union representing over 2,000 workers at the Brampton plant who have faced layoffs since 2023.
On Tuesday, Stellantis indicated that it acknowledges “that Canadians expect accountability for public funding” and that the company “has proposed to voluntarily return the government assistance received for the original retooling plan for Brampton Assembly.”
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However, the company refrained from disclosing the amount of funding it plans to return and the timing of such actions, 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 representatives from the province.
Payne’s office declined an interview request on Tuesday but informed CBC’s Power and Politics that the government still possesses options to prevent the sale of the Brampton facility — and understanding the sale conditions will be crucial.
“All we required here was for the government to maintain its position,” stated Payne, whose union has reached a standstill with Stellantis in the latest round of collective bargaining. “We’ve already observed changes in the conditions of this trade conflict in the U.S.”
Gill mentioned that Conservatives on the House’s industry committee will seek to investigate the Stellantis situation and summon Joly to appear before the committee soon.