Stellantis Signs MOU to Sell Brampton Plant to Armoured Vehicle Maker Roshel
AI-generated image · Bay Street Wire
The potential shift from passenger vehicle assembly to defense manufacturing triggers a breakdown in contract talks between the automaker and Unifor.
Automaker Stellantis has signed a memorandum of understanding with Roshel, a Canadian armoured vehicle manufacturer, regarding the potential sale of its idled assembly plant in Brampton, Ontario, according to reporting from CBC Toronto, CityNews Toronto, and Global News Toronto.
Trevor Longley, chairman, president, and CEO of Stellantis Canada, stated that the company viewed Roshel as a way to restore sustainable operations and maintain the site's role in advanced manufacturing while avoiding prolonged inactivity. The facility has been idled since 2023, resulting in the layoff of more than 2,000 workers. While the plant was initially slated for Jeep production in early 2024, that plan was paused in early 2025, and production of the Jeep Compass was moved to the U.S.
The proposed sale has led to a breakdown in contract negotiations between Stellantis and the union Unifor. According to Unifor spokesperson Kathleen O'Keefe, the company's persistence in proposing the closure and sale of the plant hindered the bargaining process, which began Sept. 1 in Toronto. O'Keefe stated that there is "no economic substitute for automotive assembly in Canada," noting that the sale threatens member benefits and deals a "devastating blow" to Ontario's industrial sector.
Unifor has paused talks and stated there will be no tentative settlement without a resolution for Local 1285 members in Brampton. The current collective agreement is set to expire at 11:59 p.m. on Sept. 20. Additionally, Unifor noted that Stellantis has yet to confirm plans for its Etobicoke casting plant and Windsor assembly plant.