Canada threatens to sue Stellantis over auto plant sale as Trump’s trade war shifts production south
TORONTO (AP) — Canada threatened Thursday to sue automaker Stellantis and recover hundreds of millions of dollars in government funding after the company shifted planned vehicle production to the United States during President Donald Trump’s trade war and agreed to sell its idled assembly plant in Brampton, Ontario.
Industry Minister Mélanie Joly said Ottawa had issued Stellantis a formal notice alleging breaches of its funding agreement, giving the automaker 30 days to address the violations or face legal action.
“We sent a notice of default and, basically, they have 30 days or else. Of course, we’ll sue them,” Joly told reporters in Toronto.
Trump’s tariffs have put pressure on Canada’s auto industry, which is deeply integrated with U.S. manufacturing. Trump has repeatedly pushed automakers to move production south of the border.
Stellantis, the world’s fourth-largest carmaker, abandoned plans to build the Jeep Compass at its Brampton plant and shifted production to Illinois, leaving more than 2,000 Canadian workers without jobs.
Canada committed up to 529 million Canadian dollars (US$380 million) in 2022 to help Stellantis retool its Brampton and Windsor plants for electric vehicle production.
“Stellantis is on the hook for hundreds of millions of dollars,” Joly said.
A message left for a spokesperson for Stellantis was not immediately returned.
Stellantis announced Monday it had agreed to sell the Brampton plant to Canadian armored vehicle manufacturer Roshel. The company offered to repay government funding received for the Brampton project but declined to disclose the amount.
Prime Minister Mark Carney accused Stellantis of betraying Canadian workers, saying the sale would not fulfill its obligations.
Joly said federal and Ontario officials plan to meet with Stellantis’ global chief executive.
Unifor President Lana Payne said a meeting Thursday involving Stellantis, the union and both governments failed to produce a resolution.
“The time to stop that was last week, the week before and the week before that,” Payne said. “Now we’re going to a different situation. We can’t stop the sale. The sale has occurred, so we would have to reverse it, which is doubly difficult, obviously.”
Autos are Canada’s second-largest export and Carney has noted the sector employs 125,000 Canadians directly and almost another 500,000 in related industries.
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