Billions of dollars in public money have been paid, or pledged, to a growing number of companies that end up pausing Canadian production or pulling out of the country altogether.
This week, Stellantis announced it plans to sell its Brampton, Ont. assembly plant to defence contractor Roshel, despite having received hundreds of millions of dollars in taxpayer money. The move has renewed scrutiny over how Ottawa chooses to dole out billions of dollars, and the strings attached to that money.
More than two years ago, Stellantis began a massive retooling of the Brampton plant, paid for in part with public money. The plan was to produce the Jeep Compass there, but last year that production was moved to Illinois. Then, this week, came news that Stellantis was selling the plant and pulling out of Brampton.
“I want to be clear, the plant is sold,” said Unifor national president Lana Payne.
The decision has angered all levels of government and the union, who accuse the automaker of breaching its contract with Ottawa.
‘I’m fed up’: Joly
“Stellantis is on the hook for hundreds of millions of dollars,” said federal Industry Minister Mélanie Joly. “I said it on Tuesday. Patience has its limits. To be frank, I’m fed up. I’m fed up and workers are fed up and Canadians are fed up.”
Ottawa has warned Stellantis that it has 30 days to demonstrate it will “correct these conditions.” If nothing changes, Joly warned she will declare the company in default of its obligations. Stellantis could face penalties, including termination of the federal funding deal and a requirement to repay all or part of the funding it has received, plus interest.
It’s not clear exactly how much money Ottawa provided to Stellantis, though company spokesperson LouAnn Gosselin has said the company would repay public funds it has received.
But Stellantis is not alone. Canadian governments have promised or pledged billions of dollars to projects that have stalled, shrunk or failed.
In 2022, the Ontario and federal governments gave General Motors hundreds of millions of dollars to retool the CAMI plant in Ingersoll, Ont. to produce electric delivery vehicles. GM paused production in May 2025, then permanently ended BrightDrop production in October 2025, citing low demand.
In Quebec, Sweden’s Northvolt received a roughly $270-million equity investment from the province before going bankrupt. Ottawa had pledged billions to the battery maker, which was never paid out.
In September, Volkswagen subsidiary PowerCo announced it was pushing back the opening of its $7-billion battery plant in St. Thomas, Ont. by two years, to 2029. Ottawa has committed $700 million in upfront capital to build the factory.
If not money, what can Canada offer?
While experts say this type of investment is necessary, some say Canada lacks a proper strategy when it comes to choosing which companies to invest in.
“We have to do it, this is not the question,” said Dan Breznitz, the Munk Chair of Innovation studies and co-director of the Innovation Policy Lab at the University of Toronto.
“The question is: what do we offer apart from time-limited money? What is it that we can think about that ties those companies to Canada so they don’t leave when the money ends or the tax benefit ends?”
A worldwide strategy
Payne says Canada must continue to make these investments to compete with other countries, which are doing the same.
“Automakers are supported all over the world by governments,” she told reporters Thursday.
“Everybody wants these industries because it is such a lucrative industry to have. The value of it is, you know, exponential in terms of the jobs that it creates, the value that it brings to advanced manufacturing, the value that it brings to technology and engineering,” she said.
But Payne says Stellantis’ decision to sell its plant is particularly egregious and runs counter to the decisions made by other automakers to idle plants during the trade war rather than permanently shut them down.
“We went to bargaining with General Motors, where we had a plant that was idled and our request of them and our demand of them in bargaining was, ‘don’t sell, don’t close,’” she said. “They said, ‘Yes, Lana. Yes, Unifor. We’re going to stay with you and fight for another day for that plant in Ingersoll.’” she said.
But the current fight with Stellantis is an example of why some believe Ottawa should be more selective in what companies and sectors it prioritizes for funding.
“My view is let the markets do the markets’ job without the government putting the finger on the scale to get a particular outcome,” said G. Kent Fellows, a professor at the University of Calgary. “That’s going to save the taxpayer in the long run, make the economy more productive in the long run.”
