Stellantis sells idled Brampton plant to Roshel

Stellantis has signed an agreement to sell its idled Brampton, Ont., assembly plant to Canadian armoured vehicle maker Roshel Inc., with 700 to 1,000 of the more than 2,000 laid-off workers expected to get a chance to return, the two companies announced Monday.

Roshel will acquire the facility and its equipment for an undisclosed amount, the companies said in a joint news release, as reported by The Canadian Press and CBC News. The deal is expected to close by the end of this year, subject to conditions that include government and regulatory requirements.

Roshel also plans to lease about one-quarter of the site back to Stellantis for automotive work, the companies said. They are exploring further collaboration on vehicle technologies and related services in the defence industry.

Unifor national president Lana Payne called the sale an “unacceptable outcome” and the “worst-case scenario” for members, and said it cuts Canada’s auto vehicle production capacity by 10 per cent. “Roshel upfitting trucks for the military is not the same as building vehicles from the ground up,” she told a news conference. The union will meet company and government officials later this week, she said.

Stellantis chief executive Antonio Filosa said in the release that the company is “committed to working with Unifor on a fair resolution” after three years of paid layoff. Stellantis said it acknowledges its obligations to workers under their collective agreement and is prepared to negotiate a settlement.

Roshel founder and CEO Roman Shimonov said the company plans a new centre of excellence for advanced manufacturing at the site, aligned with Canada’s defence industrial strategy.

Industry Minister Mélanie Joly said in a post on X that the sale does not “erase the commitment” Stellantis made to its workers, and she called on the parties to return to the bargaining table. She has asked Stellantis, Unifor, the Ontario government and representatives of the plant to meet this week, she said. International Trade Minister Maninder Sidhu, the MP for Brampton East, backed her call.

Brampton Mayor Patrick Brown said Stellantis has a legal obligation to taxpayers for the production incentives it received and a moral obligation to the workers. He said the announcement contained few details about what would be produced and noted the land is zoned for automotive production. He called on Roshel to work directly with Unifor Local 1285 on hiring and training for the laid-off workers.

The plant halted operations in 2023. It had been slated to be retooled for Jeep production before Stellantis paused that plan in early 2025 and later moved Jeep Compass production to Illinois, leaving the plant idled indefinitely. In September, Stellantis signed a memorandum of understanding with Roshel on a potential sale, and contract talks with Unifor, which represents more than 9,000 Stellantis workers in Canada, broke down.

Stellantis workers voted 97.3 per cent in favour of a strike mandate last month, as we reported at the time. The union had earlier raised concerns about the company’s plans for Brampton, and it entered talks with a plant closure notice already on the table.

Honda said Monday it will also retool its Alliston plant for hybrids, another Ontario auto announcement.

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