Friday, October 9, 2026
NewsOttawa Tells Stellantis to Build a Model in Brampton or Pay Back

Ottawa Tells Stellantis to Build a Model in Brampton or Pay Back

The Brampton assembly plant is back in the headlines, and this time it’s the federal government turning up the heat. Industry Minister Mélanie Joly has put Stellantis on notice. If the company doesn’t commit to build a new vehicle at the Ontario facility, which has sat idle since 2023, Ottawa will want the money it already handed over.

  • Stellantis recently signed a preliminary deal to sell the Brampton plant to defence contractor Roshel

  • Ottawa and Ontario each pledged $529 million back in 2022 to fund upgrades at the Brampton and Windsor plants

  • Unifor, representing roughly 9,000 Canadian workers at Stellantis, walked away from the bargaining table on September 11

A Standoff Going Back to 2025

The trouble started last year, when Stellantis, reacting to U.S. tariffs on Canadian-built vehicles, pulled the plug on plans to build the Jeep Compass at Brampton and shifted that production south of the border instead. That call put more than 2,000 direct jobs on the line, along with thousands more among suppliers.

Frustrated by the standoff, Joly even threatened legal action against the automaker last fall over its financing commitments. A dispute resolution process between the two sides remains ongoing. So far, federal payments to Stellantis total $223 million for the 2024-2025 fiscal year.

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Where Unifor Stands

News of a possible sale to Roshel has only added fuel to the fire. Stellantis maintains the deal would keep the site active within Canada’s manufacturing base and prevent a drawn-out shutdown, but the company isn’t offering much beyond that.

Unifor president Lana Payne fired off a letter to Joly, branding the situation a “disaster scenario” for Canada’s auto industry. She argues it makes no sense for a global automaker to simply walk away from its obligations at the plant when other paths forward existed.

The union is now pushing Ottawa to actually deliver something from that dispute resolution process, rather than let Brampton end up owned by a company with no ties to vehicle manufacturing.

All of it is the result of an unnecessary trade war launched by the American administration.

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