The office of Industry Minister Mélanie Joly is contesting media reports that suggested the Canadian federal government played a significant role in the negotiations leading to the sale of Stellantis's Brampton, Ontario assembly plant to defense contractor Roshel. Mathis Denis, a spokesperson for Joly's office, refuted claims that the minister was directly involved in the deal.
Denis emphasized that "the minister had no part in negotiating with Stellantis or Roshel on the deal." He clarified that Joly's involvement was limited to conflict resolution between Stellantis and the union, Unifor, which represents over 9,000 Canadian workers associated with the automaker. The discussions focused on addressing the company's decision to transfer production originally planned for the Brampton facility to the United States, a move announced in October 2025 that contravened Stellantis's commitments to the federal government.
According to Denis, Stellantis's move was in violation of its obligations tied to a federal investment of up to $529 million from the Strategic Response Fund (SRF). He underscored that Joly, her department, and her team would never endorse a sale that did not uphold the SRF commitments or lack the union's approval. "We have already made it clear to Stellantis that if they were going to move forward with a sale or a deal that did not honor their commitment under the SRF, we would use the tools at our disposal to respond," Denis stated.
On Tuesday, Prime Minister Mark Carney criticized the sale of the Brampton plant, positing that it violates several agreements between Stellantis and the Canadian government. He labeled the situation as "unacceptable," adding, "But to be more fundamental, it’s a betrayal of the workers as it is a betrayal of the obligations to Canada and by extension to all Canadians."
Despite these assertions, a report by CTV News indicated that unnamed sources with "direct knowledge" claimed Ottawa was "actively and intensively part" of the discussions between Stellantis and Roshel. The report suggested that the federal government engaged directly with both entities and was aware of the terms of the sale, implying it did not hinder the negotiations.
Additionally, CBC News reported that the federal government had been aware for several months of potential plans for Stellantis to sell the Brampton facility to Roshel, engaging in discussions since August. Stellantis formally announced the sale, along with associated equipment, to Roshel for an undisclosed sum late Monday. The companies anticipate that the transaction will close by the end of the year, pending certain governmental and regulatory requirements.
Roshel’s CEO, Roman Shimonov, indicated that his Brampton-based company is open to rehiring some of the 2,000 Stellantis employees who were laid off when operations at the plant ceased in 2023. The facility was initially set to be retrofitted for Jeep production in early 2024; however, Stellantis paused these plans in early 2025 and subsequently announced a shift of Jeep Compass production to Illinois, resulting in the Brampton plant being idled indefinitely.
Joly is scheduled to host a meeting on Thursday in Toronto involving Stellantis leadership, Unifor representatives, and Ontario’s Economic Development Minister, Vic Fedeli. Denis concluded by reiterating that the outcome of the situation was undesirable and declared, "we have no choice but to find Stellantis in default of their obligation."
