BUSINESS

"Stellantis Considers Closing Brampton Assembly Plant"

15.08.2026 4,00 B 5 Mins Read

TORONTO – Unifor has reported that Stellantis is seriously considering the closure and potential sale of its Brampton, Ontario assembly plant, which has remained idle since 2023. This news came to light when the union received formal notice from the automaker on a Wednesday.

Unifor national president Lana Payne expressed profound disappointment at a news conference held on Friday, stating, "To say that we are disappointed would be an understatement. This is a gut punch to our union and to our members, most importantly to our members, the workers who have given everything to this plant." She underscored the significance of the Brampton Assembly plant as a vital economic engine for the Brampton community, emphasizing its role in providing good union jobs and producing iconic Chrysler and Dodge vehicles.

The Brampton plant was initially scheduled to be retooled for Jeep production, a process that began in early 2024 but was put on hold in early 2025. In October 2025, Stellantis announced the relocation of Jeep Compass production from Brampton to the United States, effectively leaving the plant idle indefinitely. This significant shift prompted backlash from Canadian politicians, particularly those in the Ontario provincial and federal governments.

Payne pointed out the irony of the situation, noting that no Jeep vehicles are currently being produced at the Brampton plant, despite previous commitments to Unifor local 1285, which represents approximately 2,200 union members working at the site. These workers have been laid off since December 2023, leading Payne to declare, "This has been a lose-lose scenario for workers on both sides of the border."

The union was informed that Stellantis intends to "open discussions with another firm about the potential sale of the plant." When questioned about whether the third party involved would be another automaker, Payne remarked, "You’ll have to ask Stellantis that, but if we were looking at having an auto plant there, I probably wouldn’t be as upset right now."

Unifor clarified that while Stellantis has not provided official written notice regarding the plant's closure, existing collective agreements require the automaker to give a minimum of one year's notice should a closure or sale occur. Unifor is currently engaged in negotiations for new labor agreements with the Detroit Three automakers, having started talks with General Motors and set to proceed with Stellantis next.

In response to inquiries, Stellantis neither confirmed nor denied the potential closure or sale of the Brampton plant. LouAnn Gosselin, a spokesperson for Stellantis Canada, stated, "We are preparing to enter the collective bargaining process and have nothing to announce at this time. Our focus remains on finding a sustainable manufacturing solution for Brampton Assembly."

Payne emphasized that Unifor plans to use the upcoming labor discussions with Stellantis as an opportunity to address these issues directly. In July, Unifor members ratified a new three-year contract with Ford that included annual pay increases of three percent, which the union cited as a successful outcome of pattern-setting negotiations.

Pattern bargaining involves negotiating with one company to establish terms that are expected to be mirrored in agreements with other companies within the same sector. The current round of negotiations is taking place in the context of several challenges facing the automotive industry, including U.S. tariffs, the Trump administration's decision not to extend the Canada-United States-Mexico Agreement, and the increasing presence of Chinese electric vehicles in the Canadian market.

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