Carney accuses Stellantis of betraying Canada, vows legal action after Brampton plant sale

TORONTO — Prime Minister Mark Carney has escalated his government's stance toward automaker Stellantis after the announcement of an agreement to sell its idled plant in Brampton, Ontario, to Roshel, a Canadian manufacturer of armoured vehicles.

Carney described the deal as a betrayal of workers and Canadians, and said the federal government will use its legal rights to protect jobs and public money tied to industrial support agreements.

He made the remarks at a news conference in Montreal on Tuesday, one day after the company announced the sale agreement, amid concern over the future of more than 2,200 workers who have been off the job since the end of 2023.

Carney pledges to protect workers and public money

The prime minister said the decision to sell the plant is unacceptable, arguing that the company did not honour the commitments it made to the Canadian government and its employees.

He stressed that Ottawa will work to enforce its rights under the existing agreements, though he did not set out all the legal measures that could be taken.

The dispute centres on commitments to maintain industrial activity and jobs in Canada in exchange for government financial contributions to support the auto sector.

The government says the sale of the facility does not automatically relieve the company of its earlier responsibilities, while legal review and contacts with the parties involved continue.

More than 2,200 workers face an uncertain future

Production at the Brampton plant stopped in December 2023, when Stellantis began preparing to retool the facility and launch production of new models.

The company later suspended its retooling plans and then decided to move production of the Jeep Compass to Illinois in the United States.

As a result, the plant, which had been a major source of industrial jobs in the city, has remained idle.

Workers fear the sale will cost them any chance of returning to auto manufacturing, particularly because the buyer operates mainly in the defence vehicle sector.

The union Unifor is demanding clear guarantees on employees' rights, compensation and the future of the jobs that were tied to the plant.

How much did the Canadian government pay to support Stellantis?

The federal and provincial governments had pledged $529 million and $513 million respectively to support the retooling of the company's plants in Brampton and Windsor.

According to government figures in circulation, Ottawa has already paid about $222 million, while Ontario provided $55 million for the Windsor project, with no direct support disbursed for the Brampton project.

These amounts are tied to broader investment agreements, and do not mean the funds paid out were allocated entirely to the Brampton plant.

Stellantis has said it is prepared to discuss returning government financial support, while Ottawa is standing by its rights under the signed agreements.

Roshel rejects taking on prior obligations

Roman Shimonov, chief executive of Roshel, defended the purchase of the plant, arguing that reusing it for defence industries could provide thousands of new jobs.

He said his company is prepared to hire some former workers, but refused to take responsibility for the obligations Stellantis incurred toward its employees.

The sale price was not disclosed, and the number of confirmed jobs and hiring timelines were not specified.

The deal is expected to close before the end of 2026, once the necessary regulatory and government conditions are met.

Opposition calls for industry minister's dismissal

Conservative Leader Pierre Poilievre seized on the crisis to attack the government, calling on Carney to fire Industry Minister Mélanie Joly.

The opposition accused the Liberals of failing to protect industrial jobs despite public funding and earlier commitments.

For her part, Joly says she will continue to press Stellantis, and that the company cannot shed its responsibilities simply by selling the facility.

A meeting is scheduled for Thursday, with representatives of the federal government, Ontario, the company and Unifor, to discuss possible solutions.

What awaits Brampton plant workers?

Stellantis says it is ready to negotiate with the union on a fair settlement for the workers, in line with collective agreements and applicable law.

However, no final agreement on compensation or rehiring has been announced so far, and no court ruling has settled the dispute over the government commitments.