Stellantis has officially entered into an agreement with defense contractor Roshel for the sale of its Brampton assembly plant, which had been idled since 2023. The asset purchase agreement entails Roshel acquiring the facility and related equipment from Stellantis for an undisclosed amount. Alongside the sale, both companies are considering future collaborative opportunities in vehicle technologies and services within the defense sector.
This development arises amid stalled negotiations between Stellantis and Unifor, the union representing over 9,000 workers in Canada. Tensions have escalated regarding the future of the Brampton site and job security for the employees. In a recent vote, 97.3% of Stellantis workers in Canada supported authorizing the union to strike if no agreement is reached. Unifor emphasized that striking remains a last resort, expressing hopes for a negotiation resolution with Stellantis.
Negotiations broke down in September after Stellantis signed a memorandum of understanding with Roshel for a potential sale of the Brampton facility. This facility ceased operations in 2023, leading to layoffs for more than 2,000 workers. Initially, the plant was set to be retooled for Jeep production, but those plans were paused in early 2025, with production of the Jeep Compass being relocated to Illinois, leaving the plant idle indefinitely.
Stellantis CEO Antonio Filosa acknowledged the contributions made by Brampton employees and reiterated the company’s commitment to finding a fair resolution in collaboration with Unifor. He stated that the sale of the Brampton facility is part of Stellantis's strategic goals to open new avenues in the defense industry and to transition the plant back into productive use.
Roman Shimonov, founder and CEO of Roshel, shared plans to establish a new center of excellence for advanced manufacturing, which he believes will enhance Canada’s industrial capabilities and contribute to local economic growth. Shimonov also noted the ambition to collaborate with government and the community to fulfill this vision.
As operations resume at the Brampton facility, there is potential for approximately 700 to 1,000 of the laid-off Stellantis employees to return to work. Additionally, Roshel intends to lease about 25% of the site back to Stellantis for automotive production. The completion of the transaction is anticipated by the end of the year, subject to government and regulatory conditions.
Unifor has taken a strong stance on the matter, urging Canadian Industry Minister Mélanie Joly to intervene and evaluate whether Stellantis's sale of the plant contravenes its obligations to the government. Unifor National President Lana Payne condemned the deal, accusing Stellantis of betraying its commitments to workers and calling the sale a critical failure of the national auto strategy.
Previously, Prime Minister Mark Carney expressed disappointment regarding the relocation of Jeep Compass production to the U.S. and reminded Stellantis of its commitments under funding agreements, which included keeping the Brampton plant operational. Minister Joly has asserted that the government's commitment to protecting jobs remains, emphasizing that Stellantis's actions do not negate its responsibilities. She has initiated discussions with all relevant parties to encourage a return to negotiations, reiterating the importance of securing jobs for Brampton's workforce.
On the same day of the sale announcement, a pilot project was launched by the Region of Peel, United Way Greater Toronto, and Toronto Pearson International Airport to assist approximately 200 laid-off workers in finding new employment opportunities close to the airport.
