"We will sue them": Canada threatens to sue Stellantis

Key Points

• Canada has given Stellantis a 30-day deadline to rectify actions that allegedly violate federal funding agreements, or it will initiate legal proceedings.
• The dispute was triggered by Stellantis signing an agreement to sell its already closed Brampton assembly plant to Canadian defense manufacturer Roshel.
• A Stellantis executive stated that the company would return CAD 24 million in federal subsidies; however, the Ottawa government believes the actual amount owed by the automaker could reach hundreds of millions of CAD.

On November 12, 2026, after the Stellantis plant sale incident, Canadian Minister of Industry Mélanie Joly speaks to the media at the Sheraton Centre Toronto.

The Canadian government has threatened to sue the automotive giant Stellantis (stock code STLA). The automaker plans to sell a closed assembly plant in Brampton, Ontario; against the backdrop of the trade war under the Trump administration, the company intends to shift automotive production capacity to the United States, which Canada accuses of violating federal funding agreements.

At a press conference on Thursday, Canadian Minister of Industry Mélanie Joly stated that the government has issued a formal breach of contract notice to Stellantis, giving the company 30 days to resolve the dispute or face legal action.

Joly told reporters in Toronto, "We have issued a breach notice. Simply put, they have a 30-day deadline, and if they do not rectify by then, we will certainly sue them."

Joly noted that earlier this week, Stellantis signed a contract to sell the plant to armored vehicle manufacturer Roshel, which violates the automaker's contractual commitments to the Canadian government and the workers at the Brampton plant. She also stated that due to this action, Stellantis would be liable for compensation amounting to hundreds of millions of CAD.

Canadian Prime Minister Carney described the Brampton plant incident as "unacceptable" and a "betrayal" of the plant's workers.

Stellantis owns automotive brands such as Jeep, Dodge, Fiat, Chrysler, and Peugeot; a spokesperson for the company had not responded by Friday morning.

This confrontation occurs against the backdrop of ongoing trade tensions between the U.S. and Canada. Trump has continually pressured automakers to shift production capacity south to the U.S.

Due to U.S. auto tariffs and other market pressures, Stellantis canceled plans to produce the Jeep Compass at the Brampton plant, transferring subsequent production capacity to its plant in Illinois, USA.

Stellantis Canada CEO Trevor Langley stated on Thursday that after announcing the sale of the Brampton plant, the company would return CAD 24 million in federal subsidies. However, this amount is far lower than what the Canadian government deems the company owes.

"We understand the disappointment and uncertainty regarding the future of this plant. While the decision to sell the plant changes the original plans for the Brampton facility, the agreement we reached with this Canadian company allows the facility to be reintegrated into industrial production," Langley stated.

On October 17, 2025, a Jeep Grand Cherokee SUV at a dealership in Mississauga, Ontario, Canada.

Stellantis announced on Monday that it had reached an agreement to sell the Brampton assembly plant to Roshel, with the transaction amount not disclosed.

The company also acknowledged its obligations to the plant's employees and expressed willingness to continue negotiations with Unifor, Canada's largest private union, to secure relocation compensation plans for union members.

Stellantis's stock price has significantly declined this year, with its shares listed on the Milan Stock Exchange dropping over 60% in 2026.