The Canadian government has warned Stellantis could be required to repay hundreds of millions of dollars in public funding unless production resumes at its idled vehicle plant in Brampton, Ontario.

Industry Minister Melanie Joly said Friday that the government expects the facility to reopen with a new vehicle model. She indicated that Canada could seek to recover funds provided to support the company's Canadian manufacturing operations.

The Brampton plant has been inactive since 2024, while Stellantis has been discussing a possible sale of the facility to Canadian armoured-vehicle manufacturer Roshel. Stellantis has said it explored options for restarting automotive production but found the scenarios financially difficult.

The situation is also creating uncertainty for workers. Unifor, which represents thousands of Stellantis employees in Canada, has warned of a possible strike amid the dispute surrounding the plant and its future.

The Canadian government previously provided approximately C$710 million to Stellantis for retooling its Brampton and Windsor facilities, with conditions connected to production and employment.

The developments could have wider implications for Ontario's auto sector, manufacturing jobs and Canada's automotive supply chain as Ottawa presses for continued domestic production.