Canada’s Industry Minister Mélanie Joly’s office has rejected media reports suggesting that the federal government played an active role in negotiations over the sale of Stellantis’s Brampton Assembly Plant to defence equipment manufacturer Roshel Incorporated.
A spokesperson for the minister said Joly was not involved in negotiating the sale agreement between the two companies. Her involvement was limited to resolving the dispute between Stellantis and the workers’ union, Unifor.
According to Canadian media reports, Industry Minister spokesperson Mathis Denis clarified on Wednesday evening that claims suggesting Joly had participated in negotiations with Roshel were inaccurate. He said the minister had neither met with Roshel representatives nor negotiated the sale agreement with Stellantis.
Instead, Joly’s role was focused on facilitating discussions between Stellantis and Unifor to resolve their differences and find an acceptable solution. The union represents more than 9,000 Stellantis employees across Canada.
Dispute Between Government and Stellantis Over Production Shift to the United States
According to the spokesperson, Stellantis announced in October 2025 that vehicle production previously allocated to the Brampton facility would be moved to the United States. The decision raised questions about the company’s commitments to the federal government.
Denis said the move violated an agreement between Stellantis and the federal government, under which the company had been promised up to $529 million in financial assistance through the Strategic Response Fund.
He added that neither the minister nor her department would approve an arrangement that failed to meet the conditions attached to federal financial support or proceeded without the approval of the workers’ union.
Denis further stated that the government had already made it clear to Stellantis that if the company entered into an agreement or made a sale decision inconsistent with its commitments under the Strategic Response Fund, the federal government would use the legal and administrative powers available to it.
Mark Carney Calls Plant Sale a Betrayal of Workers
Prime Minister Mark Carney strongly criticised Stellantis’s decision to sell the Brampton plant on Tuesday, saying the move violated several commitments made by the company.
Carney described the decision as unacceptable and went further by calling it a betrayal of workers, arguing that Stellantis had also made commitments to Canada and its citizens.
Meanwhile, CTV News, citing three unnamed sources familiar with the negotiations between Stellantis and Roshel, reported that the federal government had been actively involved in the discussions. According to the report, government representatives maintained direct contact with both companies and were aware of the sale conditions.
CBC News also reported that the federal government had known about the potential sale for several months, with formal discussions and communications on the matter beginning in August.
However, the Industry Minister’s office rejected this interpretation, maintaining that government communications were aimed at resolving the dispute between Stellantis and Unifor rather than negotiating a sale agreement with Roshel.
Roshel Ready to Rehire 2,000 Former Stellantis Employees
Stellantis announced on Monday evening that it had agreed to sell its Brampton Assembly Plant, along with associated machinery and equipment, to Roshel Incorporated. The financial details of the transaction have not been disclosed.
Both companies expect the transaction to be completed by the end of this year, subject to government and relevant regulatory approvals and the fulfilment of other conditions.
Roshel Chief Executive Officer Roman Shimonov has said that his company is prepared to rehire some of the former Stellantis employees who lost their jobs at the Brampton facility.
Stellantis suspended operations at the plant in 2023, leaving approximately 2,000 workers unemployed. The company subsequently launched a modernisation project to prepare the facility for production of the Jeep Compass, with work beginning in early 2024.
However, in early 2025, Stellantis suspended the project and later announced that Jeep Compass production would be shifted to the US state of Illinois. Following that decision, the Brampton facility remained closed indefinitely.
Mélanie Joly to Meet Stellantis and Union Leaders on Thursday
Industry Minister Mélanie Joly is scheduled to hold an important meeting with Stellantis and Unifor leadership in Toronto on Thursday. Ontario Minister of Economic Development Vic Fedeli is also expected to attend.
Discussions are expected to focus on the plant’s sale, Stellantis’s commitments to the federal government, the future of affected employees and the consequences of shifting production to the United States.
Denis said the current situation was the opposite of what the government had hoped to achieve. He added that the federal government now had little choice but to consider Stellantis in breach of its commitments.
The upcoming meeting is expected to provide an opportunity for government officials, company representatives and union leaders to discuss the future of the Brampton facility and the thousands of workers affected by its closure.
