Stellantis in default of funding agreement to retool Brampton plant, Joly notifies automaker
The Canadian government has notified Stellantis that it is in default of a funding agreement regarding the retooling of its Brampton plant. Minister Mélanie Joly stated the government will seek to recoup hundreds of millions of dollars after the company moved to sell the facility to an armored vehicle manufacturer.
Why it matters
This dispute underscores the tension between corporate restructuring and government-subsidized industrial policy, impacting local employment and regional economic stability.
Cars pass along the assembly line at the Stellantis plant in Brampton, Ont. July 21, 2023. Chris Young/The Canadian Press
Industry Minister Mélanie Joly said on Thursday that Stellantis NV STLA-N has 30 days to reverse the sale of its auto plant in Brampton, Ont., or the federal government will take it to court to recoup the money it advanced to the company to refit the factory.
Ms. Joly told reporters that the government does not have the legal authority to block the sale of the plant to Roshel, a maker of armoured vehicles, but will enforce the terms of the funding agreement it signed with the automaker in 2022 and seek “hundreds of millions of dollars.” The company has breached its commitments, she said.
“I’m fed up. Workers are fed up,” she added.
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