Joly Notifies Stellantis of Alleged Default on Funding Agreement
Industry Minister Mélanie Joly said Ottawa has served a formal notice alleging Stellantis defaulted on an agreement tied to previous federal funding, following the automaker’s announcement that it would sell the Brampton, Ont., plant to Canadian defence company Roshel. In the Nov. 12 letter, Joly alleged that Stellantis had breached conditions of a 2022 federal funding agreement by abandoning plans to manufacture the Jeep Compass in Brampton, failing to select a replacement vehicle for production, and leaving the plant idle. The minister added that Stellantis now has 30 days to show it will “correct these conditions” before the federal government formally declares the company in default. Such a declaration could lead to cancellation of the funding agreement and require Stellantis to repay the federal funding it received, with interest.
Industry Minister Mélanie Joly has served Stellantis with a formal notice, alleging a default on a federal funding agreement. The notice cites the automaker’s decision to sell the Brampton plant and its failure to produce a replacement vehicle as breaches of the 2022 agreement. Stellantis has 30 days to rectify the situation, or Ottawa may cancel the agreement and demand repayment of funds with interest.
- Ottawa has formally notified Stellantis of an alleged default on a previous federal funding agreement.
- The notice, sent on November 12, cites the automaker’s abandonment of Jeep Compass production in Brampton and failure to select a replacement vehicle.
- Stellantis has 30 days to demonstrate it will correct these breaches.
- Failure to comply could result in the cancellation of the funding agreement and repayment of federal funds with interest.
- The allegations follow Stellantis’ announcement to sell the Brampton plant to Roshel.
Write a comment