Stellantis says it has signed a memorandum of understanding to sell its idled Brampton assembly plant to armored vehicle manufacturer Roshel, amidst stalled contract talks with the union representing its Canadian employees.
“Following consideration of a number of potential opportunities, Stellantis believes that Roshel represents a strong path to restoring sustainable operations at Brampton Assembly, preserving the site’s strategic role in Canada’s advanced manufacturing sector and helping to avoid a prolonged period of inactivity,” the company said in a statement Friday.
The assembly plant has been idle since December 2023, when it shut down for retooling to produce a new version of the Jeep Compass.
Last year, the company paused the retooling, citing changing market conditions, including tariffs imposed by U.S. president Donald Trump. Stellantis subsequently shifted production of the Compass to U.S. plants.
Earlier Friday, Unifor, which represents Stellantis employees, including the 2,200 at the Brampton plant, said contract talks had reached an impasse, largely over the fate of the Brampton plant.
“The proposed facility closure and sale threaten the wages, pensions and other benefits of Unifor members. It also deals a devastating blow to Canada’s industrial sector, especially in the province of Ontario and the community of Brampton,” the union said. “There is no economic substitute for automotive assembly in Canada, including the extensive supply chain, regional economic activity, and high-quality, union jobs connected to it.”
Unifor has already reached agreements with Ford and GM earlier this year. Their contract with Stellantis expires Sept. 20.
Roshel, a privately-held company founded in 2018, has
