Recent records reveal that the federal government has disbursed over $220 million to Stellantis, a global automotive manufacturer, in a bid to modernize its plants in Ontario. This revelation comes on the heels of Stellantis’s announcement that it will transfer some of its production, including the Jeep Compass, from its Brampton facility to Belvidere, Illinois. Initially, the federal government had reported a significantly lower figure, stating that Stellantis had received approximately $104.5 million for the fiscal years ending in 2023 and 2024 combined, which raised eyebrows when the automaker later decided to pivot its production plans.
The funding is part of a 2022 agreement where the federal government committed up to $529 million to support Stellantis in upgrading its assembly plants in Brampton and Windsor, Ontario. The financial assistance was aimed at facilitating the production of both gas and electric vehicles. Despite the substantial investment from the federal level, Ontario’s provincial government has yet to contribute to the Brampton facility, citing unmet conditions related to job creation and project milestones. However, Ontario Premier Doug Ford confirmed a separate $55 million commitment for the Windsor plant.
The decision to relocate production has raised alarms among approximately 3,000 employees at the Brampton plant, most of whom were already facing layoffs while the facility underwent modernization. This modernization effort was interrupted in February due to a combination of U.S. tariff complexities and uncertainty within the electric vehicle market.
Industry stakeholders and public officials have expressed their dissatisfaction over Stellantis’s decision, particularly given the financial commitments involved. Industry Minister Mélanie Joly emphasized that the funding agreement included job guarantees, triggering her intent to initiate a dispute resolution process with Stellantis to recover some of the funds.
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While Stellantis has not directly addressed this situation in detail, a spokesperson pointed out that the company remains engaged with government partners in discussions aimed at devising a sustainable future for automotive manufacturing in Canada.
According to the federal government’s official financial documents, more than $306 million of the original funding deal remains available. This includes $94 million earmarked for disbursement within the current fiscal year, along with scheduled allocations in subsequent years. However, the accuracy of these future projections remains uncertain given the evolving circumstances surrounding Stellantis’s production plans.
