Roshel Inc., a Canadian manufacturer of armoured vehicles, is set to acquire the Stellantis assembly plant located in Brampton, Ontario, as announced by the automaker on Monday.
According to Stellantis, the company will sell the inactive facility and its equipment to Roshel for an undisclosed sum.
Both companies indicated they are also considering future partnerships in vehicle technologies and related services within the defence sector.
In a press statement, Stellantis mentioned that this move will “create a pathway to return the Brampton Assembly Plant to productive industrial use.”
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Stellantis signs MOU with Canadian armoured vehicle maker on potential sale of Brampton, Ont., plant
This development follows a meeting on Friday between Unifor, which represents Stellantis’s Canadian workforce, and Stellantis, where Unifor sought clarification regarding reports of a plant sale, although the automaker did not confirm or deny the completion of such a sale.
‘Stellantis has betrayed our members’: union president
On Monday, Unifor national president Lana Payne declared that the sale represents an “unacceptable outcome” for the union and its members, labeling it the “worst-case scenario.” She noted that this closure and sale will reduce Canada’s automotive production capacity by 10 percent.
“The sale of an auto assembly facility and the loss of production capacity is catastrophic for the Canadian industry, for our nation, and most importantly, for the workers who have devoted so much to this company over many years,” Payne stated during a news conference.
“Once that capacity is lost, it is usually lost for good, leading to the elimination of thousands of quality union jobs and many more along the supply chain,” she elaborated.
Unifor national president Lana Payne stated that the sale is an ‘unacceptable outcome’ for the union and its members, calling it the ‘worst-case scenario.’ (Evan Mitsui/CBC)
“Stellantis has betrayed our members with a deceptive deal to sell the plant and abandon its commitments to these workers. Allowing this sale to proceed is a significant failure of our national auto strategy and undermines the federal government’s promise to safeguard auto workers from this U.S. trade conflict,” she remarked.
Payne expressed that the union had urged the company to maintain the plant in a “ready state for future work” despite U.S. tariffs.
“Stellantis has abandoned its responsibilities to Canadian workers in Brampton. Modifying trucks for military use is not the same as producing vehicles from scratch,” she added.
She noted that the union will convene later this week with company and government representatives.
Automaker committed to ‘fair resolution’ for workers
Stellantis acknowledged its responsibilities to workers as per their collective agreement and is ready to collaborate with Unifor to negotiate a resolution.
“Employees at Brampton have made significant contributions to Stellantis, and we take our responsibilities towards them and their families earnestly. Following three years of paid layoffs, we remain committed to working with Unifor to achieve a fair resolution,” stated Stellantis CEO Antonio Filosa in the announcement.
A handful of Unifor members gathered outside the Brampton assembly plant on Monday to show support for the union after the sale was announced. (Dana Roberts/CBC)
This decision opens “new opportunities for Stellantis in the defence sector,” Filosa remarked.
Roman Shimonov, founder and CEO of Roshel, mentioned that the company aims to establish a new centre of excellence for advanced manufacturing, “which will enable Canadian firms to better serve local customers and export to allied markets.”
“In alignment with Canada’s defence industrial strategy, it will enhance our national industrial capabilities, stimulate local economic growth, and provide much-needed manufacturing space and jobs in the Toronto region,” Shimonov stated in the announcement.
In an interview on CBC’s Hanomansing Live on Monday, Shimonov indicated that Roshel plans to lease part of the site’s space back to Stellantis but clarified that Roshel will not take on any responsibilities previously held by Stellantis.
Shimonov expressed that it is in Roshel’s best interest to utilize as much of the facility as possible and mentioned hopes of attracting a major European automaker, though he refrained from naming the company. He noted that the plant will not exclusively manufacture defence vehicles.
“Our objective is to employ thousands of individuals, with first priority given to Brampton residents,” he asserted.
In September, Stellantis entered into a memorandum of understanding with Roshel regarding a potential sale of the facility.
Over 2,000 workers laid off when plant idled in 2023
When operations ceased in 2023, the Brampton plant laid off over 2,000 workers.
In August, the union reported receiving notice that Stellantis was contemplating the closure and sale of the facility. The plant was initially intended to be retooled for Jeep production, a process that was set to begin in early 2024, but the company later paused this plan in early 2025.
Mayor Patrick Brown says retaliatory tariffs need to be back on the table after automaker Stellantis announced plans to move Jeep production slated for the plant in Brampton, Ont., to south of the border.
Stellantis later revealed it would shift production of the Jeep Compass to the U.S., an action the union deemed a breach of its existing collective agreement, resulting in the plant being idled indefinitely.
The announcement of the sale coincides with ongoing contract negotiations between Stellantis and the union representing over 9,000 workers in Canada, which remain at a standstill.
The two parties have disagreed over the future of the Brampton site and issues related to job security. Last month, Stellantis employees in Canada voted overwhelmingly, with 97.3 percent in favor of granting their union a strike mandate while negotiations remain stalled.
Unifor indicated at that time that a strike was still a “last resort” and expressed hopes for a resolution with the automaker.
Federal ministers call for return to bargaining talks
In a statement released on social media platform X on Monday, Industry Minister Mélanie Joly emphasized that the decision to sell the plant does not “erase the commitment” made by Stellantis to its employees.
“We remain dedicated to finding solutions for the more than 2,000 affected workers and their families. They deserve clarity, respect, and, most importantly, a secure future,” Joly stated.
Industry Minister Mélanie Joly, seen here during question period on Parliament Hill in Ottawa on Nov. 4, stated that the decision to sell the plant does not ‘erase the commitment’ Stellantis made to its workers. (Adrian Wyld/The Canadian Press)
Joly called for all parties involved to return to the negotiation table. She mentioned having contacted representatives from Stellantis, Unifor, the Ontario government, and the Brampton plan to arrange a meeting later this week.
“I expect them to approach the table with a singular focus: preserving well-paying jobs in Brampton,” Joly stated.
“For Brampton’s auto workers, abandoning the situation is not an option. We are unwavering in our commitment to defend and expand Canada’s auto sector in Brampton and nationwide.”
‘Families deserve answers,’ minister says
International Trade Minister Maninder Sidhu, who is also the MP for Brampton East, expressed support for Joly’s call to resume negotiations in a post on X.
“More than 2,000 assembly workers in Brampton and their families deserve clarity regarding their future,” Sidhu remarked.
“This plant has been a part of our city’s auto industry for generations. Stellantis made commitments to these workers, and it must uphold them.
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‘Don’t close, don’t sell’: Union implores Stellantis to keep Brampton plant as automaker signals sale
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Unifor Stellantis workers in Ontario vote 97% in favour of strike mandate with talks still stalled
Sidhu remarked that the federal government will persist in advocating for the plant to provide good-paying jobs in Brampton.
‘We’re angry today in Brampton,’ mayor says
In an interview, Brampton Mayor Patrick Brown stated that Stellantis has a legal responsibility to Canadian taxpayers due to the production incentives it received for manufacturing vehicles in the city, as well as a moral obligation to the members of Unifor Local 1285 who have dedicated decades of service at the plant.
“We’re angry today in Brampton,” Brown said on Monday. “Stellantis has an obligation that it cannot abandon.”
Brown expressed concerns regarding the lack of details in the announcement about what will be produced at the facility. He pointed out that the land where the plant is situated is designated for automotive production.
“If we permit Stellantis to leave Brampton without repercussions, we should not be surprised if similar actions occur across the country. This is the heart of Canadian automotive production. I worry that if we let Stellantis escape without consequences, we are effectively allowing automotive production to exit Canada entirely,” Brown warned.
He called on Roshel to collaborate directly with the union local to explore hiring and training opportunities for the laid-off Brampton autoworkers.
The sale is anticipated to be finalized by the end of the year, pending certain conditions, including government and regulatory approvals.