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

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

News

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

2026-11-13 08:04 Last Updated At:08:10

TORONTO (AP) — Canada threatened Thursday to sue automaker Stellantis and recover hundreds of millions of dollars in government funding after the company shifted planned vehicle production to the United States during President Donald Trump’s trade war and agreed to sell its idled assembly plant in Brampton, Ontario.

Industry Minister Mélanie Joly said Ottawa had issued Stellantis a formal notice alleging breaches of its funding agreement, giving the automaker 30 days to address the violations or face legal action.

“We sent a notice of default and, basically, they have 30 days or else. Of course, we’ll sue them,” Joly told reporters in Toronto.

Joly said Stellantis violated the agreement by abandoning production at Brampton without identifying a replacement vehicle.

Trump’s tariffs have put pressure on Canada’s auto industry, which is deeply integrated with U.S. manufacturing. Trump has repeatedly pushed automakers to move production south of the border.

Stellantis, the world’s fourth-largest carmaker, abandoned plans to build the Jeep Compass at its Brampton plant and shifted production to Illinois, leaving more than 2,000 Canadian workers without jobs.

Canada committed up to 529 million Canadian dollars (US$380 million) in 2022 to help Stellantis retool its Brampton and Windsor plants for electric vehicle production.

“Stellantis is on the hook for hundreds of millions of dollars,” Joly said.

A message left for a spokesperson for Stellantis was not immediately returned.

Stellantis announced Monday it had agreed to sell the Brampton plant to Canadian armored vehicle manufacturer Roshel. The company offered to repay government funding received for the Brampton project but declined to disclose the amount.

Prime Minister Mark Carney accused Stellantis of betraying Canadian workers, calling the sale a partial solution that failed to fulfill the company’s obligations.

Joly said federal and Ontario officials plan to meet with Stellantis’ global chief executive.

Unifor President Lana Payne said a meeting Thursday involving Stellantis, the union and both governments failed to produce a resolution.

“The time to stop that was last week, the week before and the week before that,” Payne said. “Now we’re going to a different situation. We can’t stop the sale. The sale has occurred, so we would have to reverse it, which is doubly difficult, obviously.”

Autos are Canada’s second-largest export and Carney has noted the sector employs 125,000 Canadians directly and almost another 500,000 in related industries.

Industry Minister Melanie Joly speaks to the media following discussions over the sale of the Stellantis Brampton assembly plant, in Toronto on Thursday, Nov. 12, 2026. (Arlyn McAdorey/The Canadian Press via AP)

Industry Minister Melanie Joly speaks to the media following discussions over the sale of the Stellantis Brampton assembly plant, in Toronto on Thursday, Nov. 12, 2026. (Arlyn McAdorey/The Canadian Press via AP)

Industry Minister Melanie Joly speaks to the media following discussions over the sale of the Stellantis Brampton assembly plant, in Toronto on Thursday, Nov. 12, 2026. (Arlyn McAdorey/The Canadian Press via AP)

Industry Minister Melanie Joly speaks to the media following discussions over the sale of the Stellantis Brampton assembly plant, in Toronto on Thursday, Nov. 12, 2026. (Arlyn McAdorey/The Canadian Press via AP)

NEW YORK (AP) — Before the screams started, Dervie Mapp heard loud popping noises outside her Brooklyn apartment. She bolted out of bed to the kitchen window and watched as a neighboring building came crashing down, raining three stories of bricks and twisted metal.

Stunned survivors cried out amid thick dust and piles of rubble that moments earlier had been people’s homes.

“I saw the whole thing come down,” Mapp, a 67-year-old retiree, told The Associated Press on Thursday. “People were running up out of the pit, screaming and hollering. I couldn’t believe it — I froze.”

The deadly collapse that occurred without warning Wednesday afternoon took down a building that housed a store selling medical uniforms on the ground level and four apartments on the floors above.

Eight people perished, including two children who were Colombian nationals, according to the Colombian consulate in New York. The New York City Police Department identified the children as Nicole Daniela Salvada Rodriguez, 9; and Kevin Santiago Reyes Gonzalez, 10.

Two men from Ecuador, José Luis Caguana Cosquillo, 26, and Gabriel Siguencia, 22, were among the deceased, according to police and the Ecuadorian consulate in New York. Also dead were Juan Daniel Salvada Guzman, 31; Ndiaye Mamadou, 31; Barry Mamadou, 23; and Edgar Sapon, 26, police said. Officials said 18 others suffered injuries.

New York Mayor Zohran Mamdani on Thursday described the victims as “parents and children, young families building their lives in our city and immigrants from Mexico, Colombia, Ecuador, Trinidad and beyond.”

Among those hurt were four firefighters assisting with rescue efforts, which continued Thursday as crews searched for survivors through heaps of debris that included mattresses, a broken sink and a refrigerator with its door missing and food jumbled inside. Vinyl records, shoes and other personal belongings littered the rubble.

James Williams said he heard loud banging at the construction site all day Wednesday as he worked at a deli across the street. He said he noticed bricks falling from a building next to the site. Then the whole building fell down.

The collapse ripped away a wall shared with an adjacent building, which remained standing with the interiors of its apartments exposed — closets crammed with clothing, a stuffed bear sitting atop a pile of shoes and laundry heaped on a pink bedspread.

Security camera video from the building showed an interior stairway shaking as the wall beside it fell in a loud crash and a cloud of dust. The camera later recorded a firefighter helping a resident descend the same stairs above a yawning abyss of debris.

“Nice and easy,” the firefighter said as the person clutched both his hand and the railing.

Despite the chaos, construction workers who had barely escaped with their lives turned around and began clawing through the wreckage to free survivors, said Mamdani. He said their swift actions saved lives.

The mayor said Thursday that two construction workers were among the dead.

They included Caguana Cosquillo, a 26-year-old immigrant from Ecuador who had a young child and pregnant wife, his brother, Carlos Caguana, told WNBC-TV.

“He was the sole provider for the family,” Caguana said, adding that his brother's wife was devastated.

“She’s completely overwhelmed,” he said, “and can’t even find the words to speak.”

Rico reported from Atlanta. AP journalists Russ Bynum in Savannah, Georgia; Hannah Fingerhut in Des Moines, Iowa; Scott Bauer in Madison, Wisconsin; Laura Turbay in Little Rock, Arkansas; and Hannah Schoenbaum in Salt Lake City contributed.

A police official and a K-9 dog inspect the site of a building that collapsed the previous day in the Brooklyn borough of New York, Thursday, Nov. 12, 2026. (AP Photo/Yuki Iwamura)

A police official and a K-9 dog inspect the site of a building that collapsed the previous day in the Brooklyn borough of New York, Thursday, Nov. 12, 2026. (AP Photo/Yuki Iwamura)

New York City Department of Buildings employees stand on a rooftop during their investigation of a building that collapsed the previous day in the Brooklyn borough of New York, Thursday, Nov. 12, 2026. (AP Photo/Yuki Iwamura)

New York City Department of Buildings employees stand on a rooftop during their investigation of a building that collapsed the previous day in the Brooklyn borough of New York, Thursday, Nov. 12, 2026. (AP Photo/Yuki Iwamura)

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