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Canada Gives Stellantis 30 Days to Address Brampton Plant Dispute

Ottawa says the planned sale of the idled Ontario factory breaches federal funding commitments after Stellantis shifted future Jeep Compass production to Illinois.

A quiet auto plant exterior beneath an overcast afternoon sky / TokenPost.ai
A quiet auto plant exterior beneath an overcast afternoon sky / TokenPost.ai

Canada gave Stellantis 30 days to respond to the federal government's allegation that the planned Brampton sale breaches a funding agreement, threatening a lawsuit if it does not.

Industry Minister Mélanie Joly said Thursday in Toronto that Ottawa had delivered a formal notice of default. “We sent a notice of default and, basically, they have 30 days — or else, of course, we will sue them,” she said.

Joly said the sale plan violated Stellantis’ commitments to the federal government and Brampton workers. She said the automaker could owe the government hundreds of millions of dollars. Prime Minister Mark Carney called the situation “unacceptable” and a “betrayal” of workers.

Stellantis announced Monday that it had reached an agreement to sell the idled Ontario site to Roshel, a Canadian armored-vehicle maker. The price was not disclosed. Stellantis had planned to build Jeep Compass vehicles in Brampton before moving future production to Illinois as U.S. tariffs and broader market conditions weighed on automakers.

Stellantis has 30 days to address the default notice before Canada pursues a lawsuit.

Riza Dagoc

Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.

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