“Canadian Government Allocates $220M to Stellantis Upgrades”

The Canadian government allocated over $220 million to support Stellantis in upgrading its Ontario plants before the automaker announced plans to relocate some production to the United States, recent reports indicate. This amount is more than double what the government initially disclosed when questioned in October about its funding for Stellantis following the announcement that it would shift the production of the Jeep Compass from its Brampton facility to Belvidere, Illinois.

According to spokespersons from Innovation, Science and Economic Development Canada (ISED), Stellantis received $18,629,124 for the fiscal year ending in 2023 and $85,936,055 for 2024, totaling $104,565,179. However, these figures did not include the most recent fiscal year, which concluded in March. The federal government’s annual public accounting documents revealed that it paid nearly $118 million to FCA Canada, Stellantis’ Canadian division, during the 2025 fiscal year, bringing the total support to approximately $222 million.

This funding was part of a 2022 agreement that provides Stellantis with up to $529 million to modernize its assembly plants in Brampton and Windsor, Ontario, to facilitate the production of both gas and electric-powered vehicles. The province also committed to providing up to $513 million, with Ontario Premier Doug Ford clarifying that no funding was provided for the Brampton plant due to unmet conditions related to job creation and project milestones. However, Stellantis did receive $55 million for the Windsor plant.

Stellantis’ decision to relocate production from Brampton has raised concerns among the approximately 3,000 employees, most of whom were already laid off during plant modernization efforts that were halted in February due to U.S. tariff uncertainties and EV market instability. Public officials have expressed outrage over the move, especially considering the funding deals with Stellantis and NextStar Energy, its electric vehicle battery venture in Windsor. Industry Minister Mélanie Joly has initiated a dispute resolution process with Stellantis to potentially recover some of the funding, as the contracts included job guarantees.

Stellantis declined to comment on the situation but reiterated their commitment to collaborating with government partners and stakeholders to develop sustainable solutions for the automotive manufacturing industry in Canada. The federal government’s Public Accounts of Canada records indicate that $306 million of the $529 million allocated under the re-tooling agreement remains, with disbursements planned for the upcoming fiscal years. The accuracy of these estimates is currently uncertain.

Latest articles