The Canadian government has issued a formal notice of default to Stellantis, giving the company 30 days to respond to allegations of violating its contractual commitments related to the Brampton assembly plant.
Industry Minister Mélanie Joly emphasized that Stellantis's decision to sell the plant to Roshel, an armored vehicle manufacturer, constitutes a breach of the agreement that could cost the company hundreds of millions of dollars. Prime Minister Mark Carney criticized the move as a betrayal of workers.
Stellantis, which owns brands like Jeep and Chrysler, has already scrapped plans to produce the Jeep Compass in Brampton, redirecting production to Illinois due to U.S. tariffs and market pressures. The company has also stated it will return $24 million in federal subsidies, although this amount is significantly lower than what the government estimates it owes.
Stellantis's stock has seen a steep decline, with shares down over 60% year-to-date, reflecting investor concerns over its operational decisions and the broader impact of trade tensions