Stellantis Signs Deal to Sell Brampton Plant to Canadian Defence Maker Roshel
Stellantis has signed a memorandum of understanding with Canadian armoured vehicle maker Roshel to potentially sell its idled Brampton, Ontario assembly plant, as union contract talks collapse over the facility's future.
Automaker Stellantis announced on September 11 that it has signed a memorandum of understanding (MOU) with Roshel, a Canadian defence and armoured vehicle manufacturer, regarding a potential sale of its shuttered Brampton Assembly Plant. The facility has remained idle since December 2023.
Union Impasse and Lost Jobs
The announcement comes as Unifor, the union representing Stellantis workers in Canada, paused contract negotiations after 10 days of talks. The union had set a September 11 deadline to reach a new collective agreement, but negotiations broke down over disagreement about the Brampton plant's future. Unifor spokesperson Kathleen O'Keefe stated that the company's "persistence" in proposing to close and sell the facility "hindered the bargaining process."
The Brampton plant employs thousands of workers, and the proposed closure threatens their wages, pensions, and benefits. Unifor has already reached new three-year contracts with General Motors and Ford, but negotiations with Stellantis remain stalled as its current agreement expires September 20, 2026.
Roshel's Ambitions
Roshel has outlined plans to establish a Canadian Centre of Excellence for Defence Manufacturing at the Brampton site. The company has committed to providing letters offering first consideration for employment to laid-off Unifor workers, with plans to bring some workers back as early as 2026 through federal light utility vehicle procurement programs.
For newcomers: If you're employed in Canada's automotive sector, this highlights ongoing industrial restructuring driven by trade tensions and tariffs. The shift from passenger vehicle assembly to defence manufacturing reflects broader changes in Canada's manufacturing landscape, which may affect job availability and skills demand in the coming years.
Sources
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