Wednesday, December 3, 2025
HomeCANADAFeds covertly paid Stellantis over $220m before Brampton production shift 

Feds covertly paid Stellantis over $220m before Brampton production shift 


Newly released federal accounting records reveal that Ottawa paid Stellantis more than $220 million to modernize its Ontario operations before the automaker announced it would move some vehicle production out of Canada. The updated figure is more than double what the federal government initially disclosed in October, when Stellantis confirmed it would scrap plans to manufacture the Jeep Compass in Brampton and instead shift production to Belvidere, Illinois.

At the time, Innovation, Science and Economic Development Canada (ISED) said Stellantis had received just over $104 million in federal support across fiscal years 2023 and 2024. But those numbers did not include payments made during the 2025 fiscal year, which ended in March. According to the newly published Public Accounts of Canada, Stellantis’ Canadian subsidiary — FCA Canada — received nearly $118 million during that period, bringing total payments to roughly $222 million.  The funding is part of a 2022 federal commitment offering up to $529 million to help retool Stellantis plants in Brampton and Windsor for both gas and hybrid-electric vehicle production.

Ontario also pledged up to $513 million, but Premier Doug Ford says the province withheld funding for the Brampton plant after Stellantis failed to meet job and project-milestone requirements. The Windsor facility, however, has received $55 million. Stellantis’ decision to shift production has heightened anxiety among the approximately 3,000 Brampton workers—many already on layoff during plant modernization. Those upgrades stalled earlier this year amid U.S. tariff uncertainty and a volatile electric-vehicle market. The move has triggered political backlash, especially given the scale of government support provided not only for the assembly plants but also for NextStar Energy, Stellantis’ Windsor-based EV battery venture.

Industry Minister Mélanie Joly has emphasized that job guarantees were built into federal agreements — including one deal worth up to $15 billion — and confirmed that Canada has launched a formal dispute-resolution process to potentially recoup funds. Stellantis declined to comment directly on the new disclosures, but reiterated in a previous statement that it is working with governments and stakeholders on a long-term plan for Brampton’s future. According to federal public accounts, $306 million of the original $529 million retooling commitment remains undisbursed, with scheduled payments allocated through 2027 and beyond. Whether those projections still stand remains uncertain.

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