Business · Companies · 7 hrs ago

Ottawa and Ontario offer Stellantis support to stop Brampton plant sale

Ottawa and Ontario offer Stellantis support to stop Brampton plant sale

The federal and Ontario governments are trying to stop Stellantis selling its Brampton plant to defence contractor Roshel.

The factory in Brampton, Ontario, has been idle since Stellantis halted operations in 2023, leaving more than 2,000 workers out of work.

The governments and Unifor, the union representing the workers, plan to present Stellantis chief executive Antonio Filosa with new options to keep the plant operating until new vehicle production can begin.

They say part of the support could come from a $2.5-billion auto fund announced by the federal and Ontario governments.

Ottawa also says Stellantis may have to repay some or all of up to $529 million in public funding under a 2022 agreement, while Stellantis has offered to repay $24 million for Brampton.

The dispute matters because the plant sale could end the chance of bringing vehicle production back, and the governments say their funding deal also relates to Stellantis's Windsor plant.

Stellantis announced the sale on Monday, which is expected to close by the end of the year, but no date has been set for the meeting with Filosa.

3 sources

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What people are saying

Mélanie JolyCanadian industry minister
We've put an aggressive package to Stellantis to prevent the sale. And we are still in solution mode to prevent the sale.
via CBC
Documents are clear, contracts also are clear.
via Globe and Mail
Vic FedeliOntario economic development minister
They have brought forward some suggestions. These are men and women who have built products at Stellantis's Brampton plant for decades. They know exactly what needs to happen in that plant.
via CBC
When you sell an auto plant, it’s gone, it’s not going to come back.
via Globe and Mail