Canada threatens to sue Stellantis over auto plant sale as Trump’s trade war shifts production south

The Wall Street Journal first reported that Stellantis clinched a deal to sell its Canadian factory to a defense firm, a move linked to shifting production south amid U.S. trade pressures. Canadian officials then confirmed the sale involved Roshel, with Industry Minister Mélanie Joly and CBC reporting the government views the transaction as a breach of contract tied to prior public support. CP24 added that Roshel’s CEO said the company would not take responsibility for 2,200 workers facing layoff at the Brampton assembly plant.

CTV News revealed lobby records showing high-level meetings between government officials, Stellantis, and Roshel ahead of the announcement, while AP News framed the dispute as part of a broader shift driven by Trump’s trade war. Outlets agree on the core facts — sale, government anger, legal threat — but differ on emphasis: WSJ leads with the deal mechanics, CBC and Global News stress the contractual breach and Joly’s "fed up" stance, and CP24 spotlights the immediate worker impact.

The federal government says it will sue to recover public funds unless Stellantis repays Ottawa. Roshel has not committed to retaining the Brampton workforce. No court filing date or repayment deadline has been disclosed.