Automaker Stellantis has signed a memorandum of understanding with Canadian armoured vehicle maker Roshel on a potential sale of its idled Brampton, Ont., assembly plant, according to statements released by both companies. The development arrived simultaneously with an announcement from Unifor that contract talks have been paused following an impasse over the future of the facility.
Stellantis Signs MOU With Roshel for Idled Brampton Plant Sale
According to Trevor Longley, chairman, president and CEO of Stellantis Canada, the company evaluated multiple options for the factory, which has been idled since 2023. Longley stated that transferring the site to Roshel offers a viable path to restoring sustainable operations in Brampton. “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,” Longley said in an emailed statement.
Roshel CEO Roman Shimonov pointed out that his enterprise maintains an ambitious vision to set up a Canadian Centre of Excellence for Defence Manufacturing within Brampton, supplementing its existing vehicle manufacturing operations. Shimonov noted that the organization stands prepared to issue letters of priority consideration for laid-off Unifor members, welcoming them back to active employment as early as 2026 via the federal Light Utility Vehicles procurement initiative alongside additional automotive and defense opportunities. The manufacturer intends to produce ballistic steel and aims to conclude its talks with Stellantis to bring over 2,000 jobs, as well as new sovereign capabilities, to Canada and to this facility.
Unifor Pauses Contract Talks Over Facility Closure Plans
The announcement disrupted ongoing collective bargaining between Stellantis and Unifor, which began Sept. 1 in Toronto. Unifor spokesperson Kathleen O’Keefe announced Friday that talks broke down after 10 days. “The persistence of the company’s proposal to close and sell the Brampton plant has hindered the bargaining process,” O’Keefe said in a statement. The current collective agreement between the union and the automaker is set to expire Sept. 20 at 11:59 p.m.
Via a video message shared on Facebook, Unifor Local 444 (Windsor Assembly) President James Stewart detailed key union objectives: reaching a satisfactory resolution concerning the future of the Brampton assembly facility, securing facility investment guarantees from the corporation—including provisions for a third shift at the Windsor assembly plant—and replicating the bargaining pattern previously established with the Ford Motor Company. Stewart verified that upper management at Stellantis made their intentions abundantly clear regarding a complete exit from the Brampton assembly plant and its subsequent sale to an outside buyer, which ultimately drove the union’s choice to suspend negotiations.
Did you know? Following the suspension of operations at the Brampton plant in 2023, upwards of 2,000 personnel faced layoffs. The site was originally scheduled for retooling dedicated to Jeep manufacturing—a project initiated in early 2024—before the corporation halted the initiative in early 2025 and subsequently revealed plans to relocate Jeep Compass manufacturing to the United States.
Brampton Mayor Condemns Proposed Sale and Demands Accountability
Brampton Mayor Patrick Brown strongly criticized the potential transaction, labeling the development disappointing because workers have been left in limbo for nearly three years, calling it yet another broken commitment from Stellantis. “If Stellantis is truly cutting and running from Brampton, it is a betrayal of our workers, their families, and every Canadian taxpayer,” Brown stated. The mayor urged the federal government to take action to hold Stellantis accountable for its commitments.
While Roshel pledged to prioritize former employees, municipal leaders continue to demand details from Roshel on the number of jobs it is proposing and the timeline of its investment, and said the company must meet with Unifor Local 1285. Unifor maintains an unwavering stance asserting that no tentative agreement will be accepted unless a proper and satisfactory outcome is secured for the Brampton-based members of Local 1285. Meanwhile, union leadership has not set a hard deadline for the current bargaining pause, and Stewart noted that decision is not indefinite.
Frequently Asked Questions
Why did Stellantis idle the Brampton assembly plant?
Production at the Brampton factory halted in 2023. Plans to retool the facility for Jeep production were paused, and the company later announced it was moving production of the Jeep Compass to the U.S.
What is Roshel’s plan for the Brampton facility?
Roshel has signed a memorandum of understanding on a potential sale and has an ambitious plan to establish a Canadian Centre of Excellence for Defence Manufacturing in Brampton, bringing over 2,000 jobs and the production of ballistic steel.
How has Unifor responded to the memorandum of understanding?
Unifor has paused contract talks, citing an impasse over the future of the Brampton plant after receiving information about plans to possibly close or sell it.
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