Speaking at a news conference on Thursday, Industry Minister M\u00e9lanie Joly said the government had served Stellantis with a formal notice of default, giving the company 30 days to address its concerns or face legal action.<\/p>\n
“We sent a notice of default and, basically, they have 30 days \u2014 or else, of course, we will sue them,” Joly told reporters in Toronto. <\/p>\n
Joly said Stellantis had violated its contractual commitments to the Canadian government and the workers at Brampton by announcing<\/a> an agreement to sell the plant to armored vehicle manufacturer Roshel earlier in the week. She added that the company was now “on the hook” for hundreds of millions of dollars over the move.<\/p>\n Canadian Prime Minister Mark Carney<\/a> has described<\/a> the situation at the Brampton plant as “unacceptable” and a “betrayal” of its workers.<\/p>\n A spokesperson for Stellantis, which owns auto brands including Jeep, Dodge, Fiat, Chrysler and Peugeot, was not immediately available to comment when contacted by CNBC on Friday morning. <\/p>\n The standoff comes as the U.S. and Canada remain locked in a bitter trade dispute<\/a>, with Trump repeatedly<\/a> putting pressure on automakers to move vehicle production south of the border. <\/p>\n Stellantis had scrapped plans to build its Jeep Compass at the Brampton plant and shifted future production to a factory in Illinois amid U.S. auto tariffs and other market pressures. <\/p>\n Stock Chart IconStock chart icon New York-listed shares of Stellantis year-to-date. <\/p>\n Stellantis Canada CEO Trevor Longley reportedly<\/a> said Thursday that the company would return $24 million in federal subsidies after announcing plans to sell the Brampton plant, a figure that falls well below the government’s estimate of what the company owes. <\/p>\n “We recognize the disappointment and uncertainty surrounding the future of the facility. While our decision to sell the plant represents a change from the original plans for Brampton, the agreement we have advanced with a Canadian manufacturer provides a path to return the facility to productive industrial use,” Longley said, according to CBC News<\/a>. <\/p>\n Jeep Grand Cherokee SUVs at a dealership in Mississauga, Ontario, Canada, on Friday, Oct. 17, 2025.<\/p>\n Bloomberg | Bloomberg | Getty Images<\/p>\n![\"hide](\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\")
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