The Canadian federal government allocated over $220 million to Stellantis to modernize its assembly plants in Ontario. This financial support came before the automaker announced plans to shift some production to the United States. Recent records show this amount exceeds what was previously disclosed by the government.
Details of the Financial Support
The investment includes:
- $18,629,124 for fiscal year 2023
- $85,936,055 for fiscal year 2024
- A total of $118 million for fiscal year 2025
Thus, the total support from the federal government has reached approximately $222 million, significantly more than earlier estimates provided in October. This funding stems from a 2022 agreement intended to aid Stellantis in enhancing its plants in Brampton and Windsor, Ontario. The objective was to bolster both gas and electric vehicle production capabilities.
Provincial Funding Situation
Ontario Premier Doug Ford indicated that his government has not yet allocated funding for the Brampton plant. This decision was based on unmet conditions related to job creation and project timelines. However, he confirmed that Stellantis received $55 million for upgrades at the Windsor facility.
Impact on Employment
Stellantis’s decision to relocate some production has raised concerns about job security for approximately 3,000 workers at the Brampton plant. Many employees were already laid off during the upgrading process, which was suspended due to uncertainties stemming from U.S. tariffs and the evolving electric vehicle market.
Government Response
Public officials have expressed anger regarding Stellantis’s production shift, especially in light of the substantial financial support provided. Industry Minister Mélanie Joly noted that the contracts included job assurances. She has initiated a dispute resolution process with Stellantis to seek the recovery of some funds.
Future Financial Allocations
The federal government’s official records indicate that $306 million remains available under the modernization deal. Future disbursements are scheduled as follows:
- $94 million in this fiscal year
- $95 million in fiscal year 2027
- $79 million the following year, with additional smaller amounts in subsequent years
It remains to be seen if these future financial projections will hold true amid ongoing uncertainties in the automotive sector.
Stellantis’s Position
A spokesperson for Stellantis refrained from commenting directly on the issue but reiterated their commitment to engaging with government partners. The company aims to establish sustainable solutions for the Brampton facility and ensure a robust future for automotive manufacturing in Canada.
