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Canada Serves Stellantis Default Notice

Canada has given Stellantis 30 days to fix alleged breaches of its Brampton funding agreement or face a lawsuit, adding a legal overhang to shares that have fallen about 13% in three sessions.

Canada has served Stellantis (NYSE: STLA), the carmaker behind the Jeep Compass, with a notice of default, giving it 30 days to fix alleged breaches of a funding agreement or be sued. Industry Minister Mélanie Joly announced the step on Thursday, after the group dropped Compass production at Brampton, Ontario.

Stellantis shares closed at $3.86 in New York on Thursday, down 6.1% on the day, after falls of 3.6% on Tuesday and 3.5% on Wednesday. That is 12.7% below Monday’s close of $4.42 and the lowest close in the period since 10 August, when the shares ended at $5.58.

Line chart of Stellantis share price sliding from August to a period low on 12 November
Stellantis (NYSE: STLA) daily close, 10 August to 12 November 2026
STLA.US

Stellantis moved Compass production to the US amid tariffs, leaving the Brampton plant idle, and on Monday announced it would sell the site to Roshel. Prime Minister Mark Carney called the decision unacceptable and a betrayal, and Lana Payne of the Unifor union said Stellantis had breached its commitments to workers.

Joly said Stellantis violated the agreement by abandoning Brampton production without identifying a replacement vehicle. She described the notice plainly.

We sent a notice of default and, basically, they have 30 days — or else, of course, we will sue them.

Mélanie Joly, Industry Minister

The two sides are far apart on money. Joly said Stellantis is “on the hook” for hundreds of millions of dollars, while Stellantis Canada CEO Trevor Longley reportedly said $24M in federal support would be returned. More than 2,000 workers are reported to be left without jobs, and Canada’s 2022 commitment was up to C$529M (US$380M).

The 30 days run to roughly mid-December. Stellantis said it is prepared to work with Unifor on a settlement.

The shares were already sliding before the notice, and it is not established whether the announcement came before the New York close, so the falls are consistent in timing with the news but not shown to be caused by it. Friday’s session has not yet opened in New York.

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