Canada tells Stellantis to reopen Ontario plant or hand back funding
The Brampton factory has sat empty since 2023, and Stellantis is reportedly in talks to sell it rather than restart it.
Published
Canada's industry minister says Stellantis must reopen its Ontario assembly plant or return the government money it received for the site.
The Brampton plant has been idle since 2023. Stellantis is in talks to sell the factory to Roshel, an armoured-vehicle maker, as the site's Unifor labour contract nears expiry. Stellantis has said there is no long-term business case for keeping the plant running.
The ultimatum lands as trade tensions between Canada and the United States over the auto sector deepen. The White House is moving to strip Canadian goods from federal purchasing, adding to restrictions already in place on Canadian dairy, autos and alcohol.
The demand gives Ottawa a firmer hand in trade talks with Washington: the government can now credibly threaten to claw back its support if Stellantis walks away from the plant. Prime Minister Carney is pursuing a partnership with the EU while also signalling openness to a deal with the US, and keeping domestic auto manufacturing capacity intact strengthens his position on both fronts. Without clarity on what Stellantis decides to do, the outlook for the stock itself stays open.