On Monday, Stellantis announced that Roshel Inc., a Canadian manufacturer of armoured vehicles, will acquire the Brampton, Ontario assembly plant.
The automaker indicated that Roshel will take over the inactive plant along with its equipment for an undisclosed price.
Both companies mentioned they are looking into potential partnerships in vehicle technologies and related services within the defence sector.
In its press release, Stellantis stated that this development will “create a pathway to return Brampton Assembly Plant to productive industrial use.”
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Stellantis signs MOU with Canadian armoured vehicle maker on potential sale of Brampton, Ont., plant
This announcement follows Unifor’s meeting with Stellantis on Friday, where they inquired about rumors regarding the sale of the plant. The automaker did not confirm or deny any finalized sale.
‘Stellantis has betrayed our members’: union president
Lana Payne, Unifor’s national president, expressed on Monday that the sale represents an “unacceptable outcome” for the union and its members, labelling it the “worst-case scenario.” She noted that shutting down and selling the plant reduces Canada’s automotive production capacity by 10 percent.
“The sale of an assembly plant and the associated loss of production capacity is detrimental to the Canadian industry, our nation, and particularly to the workers who have dedicated years of service to the company,” Payne stated at a press conference.
“Once that capacity is lost, it is often irreversible, leading to the loss of thousands of good union jobs and affecting many more in the supply chain,” she added.
Unifor national president Lana Payne said Monday that the sale is an ‘unacceptable outcome’ for the union and its members, calling it the ‘worst-case scenario.’ (Evan Mitsui/CBC)
“Stellantis has let down our members with a secretive agreement to sell the plant and abandon its commitments to these workers. Allowing this sale to proceed represents a major failure of our national auto strategy and violates the federal government’s pledge to safeguard auto workers from the ongoing U.S. trade conflict.”
Payne mentioned that the union had encouraged the company to maintain the plant in a “ready state for future work” despite the U.S. tariffs.
“Stellantis has neglected its responsibilities to Canadian workers in Brampton. Modifying trucks for military use is not equivalent to building vehicles from scratch,” she stated.
She added that the union plans to meet with company and government representatives later this week.
Automaker committed to ‘fair resolution’ for workers
Stellantis affirmed its acknowledgment of responsibilities towards workers under their collective agreement and expressed readiness to engage with Unifor for negotiations.
“Employees in Brampton have made significant contributions to Stellantis, and we take our obligations to them and their families seriously. After three years of paid layoffs, we are committed to working with Unifor to reach a fair resolution,” said Stellantis CEO Antonio Filosa in the release.
A handful of Unifor members gathered outside the Brampton assembly plant on Monday to show support for the union after the sale was announced. (Dana Roberts/CBC)
Filosa added that this transition opens “new opportunities for Stellantis within the defence sector.”
Roman Shimonov, founder and CEO of Roshel, stated that the company aims to establish a new centre of excellence for advanced manufacturing, “which will empower Canadian businesses to better serve domestic customers and expand into allied markets.”
“In alignment with Canada’s defence industrial strategy, this initiative will enhance our sovereign industrial capabilities, promote local economic growth, and provide much-needed manufacturing space and jobs in the Toronto area,” Shimonov said in the release.
In an interview on CBC’s Hanomansing Live on Monday, Roshel CEO Roman Shimonov revealed that the company intends to lease some of the plant’s space back to Stellantis, though he clarified that Roshel will not take on any obligations previously held by Stellantis.
Shimonov indicated that it is in Roshel’s best interest to maximize the use of the plant, expressing hopes to collaborate with a major European automaker, which he did not name. He mentioned that Roshel has a letter of intent from this automaker, and the facility will not be limited to manufacturing defence vehicles.
“Our objective is to create thousands of jobs, with priority given to Brampton residents,” he stated.
In September, Stellantis had signed a memorandum of understanding with Roshel regarding a potential sale of the facility.
Over 2,000 workers laid off when plant idled in 2023
The Brampton plant saw more than 2,000 workers laid off when it ceased operations in 2023.
In August, the union reported that Stellantis informed them of plans to consider closing and selling the plant. Originally, the facility was to be retooled for Jeep production starting in early 2024, but this plan was put on hold in early 2025.
Mayor Patrick Brown says retaliatory tariffs need to be back on the table after automaker Stellantis announced plans to move Jeep production slated for the plant in Brampton, Ont., to south of the border.
Later, the company disclosed that it would shift production of the Jeep Compass to the U.S., which the union described as a breach of its current collective agreement, resulting in the plant being idle indefinitely.
The announcement of the sale comes amid ongoing contract negotiations between Stellantis and the union that represents over 9,000 workers in Canada, which are currently at a standstill.
Both sides have disagreed over the future of the Brampton facility and job security concerns. Last month, Stellantis employees in Canada voted overwhelmingly to grant their union a strike mandate, with 97.3 percent in favor of potential job action.
At that time, Unifor indicated that a strike would remain its “last resort” and expressed hope to reach an agreement with the automaker.
Federal ministers call for return to bargaining talks
Industry Minister Mélanie Joly released a statement on social media platform X on Monday, asserting that the decision to sell the plant does not “negate the commitment” Stellantis has made to its workers.
“We remain dedicated to finding solutions for the more than 2,000 workers and their families affected. They deserve clarity, respect, and, most importantly, a secure future,” Joly remarked.
Industry Minister Mélanie Joly, pictured here during question period on Parliament Hill in Ottawa on Nov. 4, said Monday that the decision to sell the plant doesn’t ‘erase the commitment’ that Stellantis made to its workers. (Adrian Wyld/The Canadian Press)
Joly emphasized the need for all parties to return to the negotiating table. She stated that she has contacted representatives from Stellantis, Unifor, the Ontario government, and the Brampton plant to arrange a meeting later this week.
“I expect them to come to the table with a singular focus: protecting good-paying jobs in Brampton,” Joly stated.
“For the auto workers in Brampton, abandoning the effort is not an option. We are unwavering in our commitment to defend and enhance Canada’s auto industry both in Brampton and nationwide.”
‘Families deserve answers,’ minister says
International Trade Minister Maninder Sidhu, who also represents Brampton East, expressed his support for Joly’s call to resume negotiations on X.
“The more than 2,000 workers at the Brampton assembly plant and their families deserve clarity regarding their future,” Sidhu remarked.
“This plant has been integral to our city’s automotive industry for generations. Stellantis has made commitments to these workers, and it is imperative that they uphold them.
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‘Don’t close, don’t sell’: Union implores Stellantis to keep Brampton plant as automaker signals sale
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Unifor Stellantis workers in Ontario vote 97% in favour of strike mandate with talks still stalled
Sidhu affirmed that the federal government will continue to advocate for the plant to provide well-paying jobs in Brampton.
‘We’re angry today in Brampton,’ mayor says
Brampton Mayor Patrick Brown articulated in an interview that Stellantis has a legal responsibility to Canadian taxpayers regarding the production incentives it has received for manufacturing cars in the city, as well as a moral obligation to Unifor Local 1285 members who have labored diligently for many years at the plant.
“We’re angry today in Brampton,” Brown stated on Monday. “Stellantis has commitments they cannot simply walk away from.”
Brown noted that the announcement lacked clarity on what will be produced at the plant, stressing that the land it occupies is designated for automotive manufacturing.
“If we permit Stellantis to depart from Brampton without consequences, we risk setting a precedent that could lead to more such actions across the nation. This is the heart of Canadian automotive production. I am concerned that allowing Stellantis to leave without repercussions indicates an acceptance of the loss of automotive production in Canada altogether,” Brown remarked.
He called upon Roshel to collaborate directly with the local union to identify hiring and training opportunities for the displaced Brampton autoworkers.
The deal is anticipated to finalize by the end of this year, contingent on specific conditions, including governmental and regulatory approvals.
