Business · Companies · 18 mins ago
Ottawa serves Stellantis notice of default after Roshel deal
Ottawa has served Stellantis with a notice of default.
The notice concerns a funding agreement with the automaker.
Ottawa’s action came after a deal involving Roshel.
The available details do not describe the Roshel deal or explain why Ottawa considers the agreement in default.
They also do not say what funding is involved.
No next steps are specified.
Industry Minister Mélanie Joly notified Stellantis that the federal government considers it in default of a funding agreement.
The automaker has 30 days to meet the agreement’s terms before the government requires repayment of taxpayer aid.
The 2022 agreement supported retooling work at Stellantis plants in Brampton and Windsor, Ontario.
Stellantis sold its Brampton plant to armoured-vehicle maker Roshel after abandoning plans to build the Jeep Compass there.
A redacted copy of the agreement shows the government provided up to $529-million, though the amount paid is unclear.
- Who
- Industry Minister Mélanie Joly notified Stellantis. The company’s Canadian division chief executive is Trevor Longley.
- What
- Ottawa says Stellantis is in default of a federal funding agreement and gave it 30 days to meet the terms.
- When
- November 12, 2026. The agreement dates to 2022.
- Where
- The agreement covered work at plants in Brampton and Windsor, Ontario.
- Why
- Stellantis has not met terms that include naming a vehicle to be built at the Brampton plant, which it sold to Roshel.
This story does not have two clearly opposing sides.
Stellantis entered a federal funding agreement for work at plants in Brampton and Windsor, Ontario.
Stellantis idled its Brampton plant and laid off about 3,000 workers, intending to retool it for the Jeep Compass.
The United States placed a 25-per-cent tariff on Canadian-made cars, and work on the Brampton retooling was halted.
Stellantis said the Jeep Compass would be built at an idled plant in Belvidere, Illinois, instead of Brampton.
Stellantis said it had a preliminary agreement to sell the Brampton factory to Roshel.
Joly notified Stellantis that it was in default and gave it 30 days to meet the agreement’s terms.
- Notice date
- November 12, 2026
- Deadline
- 30 days to meet the funding agreement’s terms
- Funding agreement
- 2022
- Potential government funding
- Up to $529-million for Brampton and Windsor plant work
- Brampton buyer
- Roshel, an armoured-vehicle maker