Canada’s federal government had been aware for several months that automaker Stellantis was considering selling its assembly plant in Brampton, Ontario, to Roshel Inc., a Canadian manufacturer of armoured military vehicles. The revelation has raised fresh questions about the proposed sale, the government’s involvement and the future of thousands of displaced automotive workers.
According to Canadian media reports, a source familiar with the discussions said the federal government had been in contact regarding the potential deal since August. Both Prime Minister Mark Carney’s Office and the office of Industry Minister Mélanie Joly were reportedly informed about the details before the announcement was made.
Stellantis announced on Monday that it planned to sell its Brampton assembly plant to Roshel Inc. The announcement prompted a strong reaction from Prime Minister Mark Carney, who accused the automaker of betraying Canadian workers and breaking its commitments to the country.
More Than 2,000 Workers Already Lost Their Jobs
Production at the Brampton facility was suspended in 2023 as Stellantis pursued plans to modernize its manufacturing operations and prepare the plant for production of the Jeep Compass.
The decision resulted in more than 2,000 workers losing their jobs, leaving many employees uncertain about their future.
The proposed sale to Roshel has further increased concerns among former employees. Both Carney and Industry Minister Mélanie Joly have expressed reservations about the development.
Joly is scheduled to meet with relevant stakeholders in Toronto on Thursday to discuss possible solutions and identify a way forward for the affected workers.
Industry Minister’s Office Denies Involvement in Sale Negotiations
Meanwhile, a spokesperson for Industry Minister Mélanie Joly, Mathis Denis, has denied that the minister played any role in negotiating the proposed sale between Stellantis and Roshel.
According to the spokesperson, Joly never met with Roshel regarding the transaction, and reports suggesting that she was involved in the negotiations are inaccurate.
The spokesperson also emphasized that the minister, her department and her team could not have approved an agreement that was unacceptable to the relevant labour union.
He said Joly would never have supported a decision that did not have the union’s backing.
Federal Government Had Committed $529 Million to Stellantis
The controversy has also brought renewed attention to a major investment agreement signed in 2022 under former Prime Minister Justin Trudeau.
Under that agreement, the federal government committed up to $529 million to support the modernization of Stellantis facilities in Brampton and Windsor, Ontario.
The investment was intended to upgrade both plants and increase production of electric and conventional vehicles.
The Ontario government had also pledged up to $513 million in funding for the two facilities as part of the arrangement.
However, according to Canadian media reports, Ontario did not provide funding for the Brampton plant’s modernization project because Stellantis failed to meet agreed conditions related to job creation and other project milestones.
The Industry Minister’s spokesperson reiterated that neither Joly nor her team would approve an agreement that contradicted the commitments Stellantis made in 2022.
Doug Ford Warns Against Assembling Chinese Vehicle Kits in Ontario
Ontario Premier Doug Ford has also written to Prime Minister Mark Carney, expressing serious concerns about the proposed sale of the Brampton facility.
In a letter sent on Tuesday, Ford warned against allowing the plant to be used to assemble vehicles in Canada using parts and kits manufactured in China.
Ford argued that permitting Chinese automakers to import vehicle components and simply assemble them in Canada could seriously undermine Ontario’s automotive industry.
He said the future of the province’s automotive sector, along with thousands of related businesses and workers, must not be put at risk.
According to Ford, allowing Chinese-made vehicle assembly kits to be processed at the Brampton facility could have devastating consequences for Canada’s automotive industry.
Potential Partnership With Chinese Automaker Had Previously Emerged
Concerns about Chinese vehicle assembly at the Brampton plant had already surfaced in February this year.
A Bloomberg report at the time indicated that Stellantis was in discussions about a possible partnership with Chinese automaker Zhejiang Leapmotor Technology, based in Hangzhou, China.
Following reports of the potential arrangement, Ford began opposing the proposal.
On Monday, responding to questions about the plant’s proposed sale, the Ontario premier repeated his concerns, insisting that Canada should not allow vehicle assembly kits imported from China to be assembled in Ontario.
He said the priority should be finding a suitable vehicle model for the facility that protects Canada’s domestic automotive industry and the interests of local workers.
Meanwhile, Conservative Party Leader Pierre Poilievre has also criticized the federal government over the issue and called for Industry Minister Mélanie Joly to be removed from her position.
Poilievre argued that the Liberal government had failed to prevent the Brampton plant from shutting down.
Growing Political and Economic Controversy
The proposed sale of Stellantis’ Brampton facility has evolved into a major political and economic controversy, extending well beyond a commercial transaction.
The dispute now involves federal investment commitments, the future of thousands of automotive workers, concerns about Chinese vehicle imports and the long-term competitiveness of Canada’s domestic automotive industry.
As discussions continue, the central question remains whether the Brampton facility can be given a sustainable manufacturing future while protecting Canadian jobs and the country’s automotive sector.
