Canada Issues Default Notice to Stellantis Over Factory Sale

The Canadian federal government has issued a formal notice of default to automaker Stellantis over its agreement to offload an idled vehicle assembly facility in Brampton, Ontario. Industry Minister Mélanie Joly announced that the manufacturer has 30 days to resolve contractual compliance issues or confront a federal lawsuit. Government officials contend that selling the plant to armored vehicle builder Roshel breaches previous funding covenants tied to domestic production and employment commitments.

The confrontation highlights expanding cross-border tensions between North American trading partners as automotive manufacturers alter supply chains to align with United States tariff directives. Canadian Prime Minister Mark Carney characterized the factory transaction as a betrayal of local assembly personnel. Officials emphasized that Stellantis remains liable for hundreds of millions of dollars in state subsidies if production shifts permanently across the southern border.