Industry Minister Mélanie Joly’s office has disputed reports that suggested the federal government played an active role in negotiations concerning the sale of the Brampton, Ontario assembly plant from automaker Stellantis to defense contractor Roshel. Mathis Denis, a spokesperson for Joly's office, stated that claims of her involvement in the deal are inaccurate.
Denis emphasized that Minister Joly did not engage in negotiations with either Stellantis or Roshel regarding the sale. Instead, her role was confined to conflict resolution between Stellantis and the union representing over 9,000 Canadian workers at the automaker. He clarified that the minister never met with Roshel and only participated in discussions aimed at finding a way forward after Stellantis announced its decision to move production previously allocated for the Brampton facility to the United States.
The plan to shift production was unveiled in October 2025 and was deemed a breach of Stellantis's obligations to the Canadian government. These obligations were tied to a federal commitment of up to $529 million through the Strategic Response Fund (SRF). According to Denis, the federal government would not approve any deal that did not uphold Stellantis's commitments under the SRF and lacked the union's approval.
Denis reiterated that the government had made its stance clear to Stellantis: should they pursue a sale or deal that did not honor their commitments under the SRF, the government would utilize the tools at their disposal to respond appropriately.
On Tuesday, Prime Minister Mark Carney described the sale of the Brampton plant as a violation of Stellantis's agreements, calling it unacceptable. He pointed out that this action represented a betrayal not only to the workers but also to Canada and, by extension, to all Canadians.
Later that day, CTV News reported, citing three unnamed sources with direct knowledge of the discussions, that Ottawa was "actively and intensively part" of talks between Stellantis and Roshel. The report claimed that the federal government engaged directly with both companies, was aware of the terms of the sale, and did not impede the transaction.
In addition, CBC News reported that the federal government had been aware for months of the potential sale of the facility to Roshel and engaged regularly in discussions since August. Stellantis officially announced the sale of the facility, along with associated equipment, to Roshel for an undisclosed sum late Monday afternoon. The transaction is expected to close by the end of the year but is subject to various conditions, including government and regulatory approvals.
Roshel's CEO, Roman Shimonov, has indicated that his Brampton-based company is open to rehiring some of the 2,000 Stellantis workers who were laid off when production at the plant ceased in 2023. The facility had been intended for retooling for Jeep production, a process that commenced in early 2024 but was put on hold by Stellantis in early 2025. Stellantis later announced that it would move production of the Jeep Compass to Illinois, leaving the Brampton plant idle indefinitely.
In light of these developments, Minister Joly is scheduled to hold a meeting on Thursday in Toronto with representatives from Stellantis and Unifor, along with Ontario's Economic Development Minister Vic Fedeli. Denis conveyed that this outcome was not what the government desired, and they believe it is necessary to find Stellantis in default of their obligations.
