Prime Minister Mark Carney’s federal government was actively involved in negotiations leading to Stellantis’s agreement to sell its Brampton assembly plant to Canadian armoured vehicle manufacturer Roshel, according to a CTV News report citing three sources with direct knowledge of the discussions. The reported involvement has raised questions about Ottawa’s role in the transaction, particularly after Carney and Industry Minister Mélanie Joly publicly condemned the sale as a betrayal of Canadian autoworkers.
According to the report, federal officials held more than a dozen meetings with Stellantis and Roshel over several months and were aware of the proposed transaction’s terms. Sources indicated that Ottawa ultimately did not block the agreement, although one source suggested the government had initially opposed it. Joly’s office declined to discuss confidential negotiations but maintained that the federal government had never advocated for an agreement between the two companies.
Following Stellantis’s announcement on Monday, Carney described the sale as unacceptable and accused the automaker of betraying its commitments to Canadian workers. Joly similarly alleged that Stellantis had violated its contractual obligations and pledged to pursue legal measures to protect Canadian jobs. However, CBC News reported that a partially redacted version of the automaker’s 2022 federal funding agreement appeared to contain provisions that could allow certain exceptions concerning the Brampton facility.
The controversy has also prompted criticism from the federal Conservatives. Opposition Leader Pierre Poilievre called for Joly’s dismissal over the handling of the plant’s future, while Conservative labour critic Kyle Seeback questioned the government’s response to the transaction. The competing accounts have intensified scrutiny of Ottawa’s involvement in the negotiations and its efforts to safeguard domestic automotive manufacturing.
Financial arrangements surrounding the sale have added another dimension to the dispute. In 2022, the federal government committed up to $529 million toward retooling Stellantis facilities in Brampton and Windsor. Stellantis has since offered to voluntarily repay the federal assistance associated with the Brampton plant’s original redevelopment plans, an amount three sources reportedly estimated at $24 million.
Roshel intends to transform the Brampton facility into a manufacturing centre supporting both defence and automotive production. The company, which is pursuing a major Canadian military contract for light utility vehicles, has indicated that it will prioritize hiring former Stellantis employees. Roshel CEO Roman Shimonov also confirmed that Stellantis would lease back approximately 25% of the facility under the proposed arrangement.
The Brampton plant has remained idle since December 2023, and more than 2,200 workers have been affected by the shutdown and subsequent changes to Stellantis’s production plans, including the relocation of planned Jeep Compass manufacturing to Illinois. Unifor has expressed concerns about the future of unionized automotive employment, while Joly has scheduled discussions with Stellantis representatives and union leaders.
The agreement highlights growing tensions surrounding Canada’s automotive sector as the federal government seeks to protect manufacturing employment while supporting emerging defence industries. Questions remain over the enforceability of Stellantis’s previous commitments, the recovery of public funding and whether Roshel’s proposed operations can provide comparable employment opportunities for displaced autoworkers.
