Government’s tough stance on Stellantis sale looks more about optics
However, emerging evidence suggests the government’s opposition may stem more from political messaging than genuine principle.
A CTV News investigation revealed that officials were aware of the sale months before its public announcement and did not raise objections. In fact, the government engaged in more than a dozen meetings with Stellantis and Roshel during the negotiations. While a spokesperson for Industry Minister Mélanie Joly later denied direct involvement in the deal, the inconsistency reveals how fragile the government’s stance has become.
The Brampton plant, once a key part of Stellantis’ Canadian operations, now sits at the center of a political dispute. The company received $529 million in federal subsidies to modernize the facility and its sister plant in Windsor, with $222 million already disbursed. Stellantis claims only $24 million of that funding went to Brampton upgrades—a sum it has agreed to repay voluntarily. The rest was directed to Windsor, where production continues and conditions appear to have been fulfilled.
Stellantis has also met other obligations under its agreements. The automaker had pledged to maintain at least 4,475 full-time jobs in Canada, and today its Windsor plant employs over 6,400, including a newly added third shift. In comparison, Ford of Canada received $464.5 million in federal funding to restart its Oakville plant, supporting roughly 2,000 jobs—a higher per-worker cost than Stellantis’ investment.
Yet the government’s focus has remained fixated on Brampton’s closure, even though Stellantis still employs more Canadians than any other Detroit Three automaker. This selective outrage grows sharper when considering the broader context: Stellantis took federal funds with conditions, including promises to produce electric vehicles. But the market for EVs has collapsed, forcing the company to write down $35 billion in failed investments. The Brampton plant was originally intended to build Jeep Compass models, some of which were pushed toward electrification, a strategy now widely viewed as flawed.
The government’s demand for repayment from Stellantis also raises legal questions. If the company is returning $24 million voluntarily, what legal grounds does Ottawa have to pursue further action? The original deal included force majeure clauses, and since 2022, when the agreements were struck, global conditions have shifted dramatically. U.S. tariffs, slowing EV demand, and Stellantis’ financial struggles have all altered the business environment. The company’s decision to sell the Nextstar battery plant to LG Energy Solutions for just $100 million, after reportedly paying millions to offload it, further weakens claims of corporate misconduct.
The Brampton plant’s future now depends on whether Roshel can restart operations. The armored vehicle manufacturer has no experience in civilian car production, and any retooling for EV assembly would require market demand and regulatory approvals. For now, the government’s condemnation appears more about political appearance than substantive policy.
