Roshel Inc., a Canadian manufacturer of armoured vehicles, is set to acquire the Stellantis assembly facility located in Brampton, Ontario, as announced by the automaker on Monday.
According to Stellantis, the company will transfer ownership of the dormant plant and its equipment to Roshel for an undisclosed sum.
Both companies have indicated they are also looking into potential partnerships in vehicle technologies and related services within the defence sector.
In a press release, Stellantis stated that this development will “establish a route to reinstate the Brampton Assembly Plant into productive industrial activity.”
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Stellantis signs MOU with Canadian armoured vehicle maker on potential sale of Brampton, Ont., plant
This announcement follows a meeting between Unifor, the union representing Stellantis workers in Canada, and Stellantis on Friday, where Unifor inquired about reports regarding the plant’s sale, to which the company did not confirm or deny.
‘Stellantis has betrayed our members’: union president
Lana Payne, Unifor’s national president, expressed on Monday that the sale represents an “unacceptable outcome” for the union and its members, labeling it the “worst-case scenario.” The closure and sale of the facility would reduce Canada’s auto production capacity by 10 percent, she indicated.
“The decision to sell an assembly plant and the consequent loss of vehicle production capacity is catastrophic for the Canadian automotive sector, for our nation, and, most importantly, for the workers who have dedicated many years to this company,” Payne stated during a press conference.
“Once that production capacity is lost, it is typically gone for good, taking with it thousands of well-paying union jobs and additional positions in the supply chain,” she added.
Unifor national president Lana Payne said Monday 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 covert deal to sell the plant and abandon its commitments to these workers. Allowing this sale to proceed represents a significant failure of our national automotive strategy and undermines the federal government’s promise to safeguard auto workers from this U.S. trade conflict,” she asserted.
Payne stated that the union had encouraged the company to maintain the plant in a “ready state for future work” despite U.S. tariffs.
“Stellantis has renounced its duties to Canadian workers in Brampton. Upfitting trucks for the military does not equate to manufacturing vehicles from scratch,” she noted.
The union plans to meet with company and government representatives later this week, she added.
Automaker committed to ‘fair resolution’ for workers
Stellantis has acknowledged its responsibilities to workers under the collective bargaining agreement and is ready to engage with Unifor to reach a settlement.
“Employees at the Brampton facility have made significant contributions to Stellantis, and we take our obligations to them and their families seriously. After three years of paid layoffs, we remain dedicated to collaborating with Unifor on a fair resolution,” said Stellantis CEO Antonio Filosa in the statement.
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)
Filosa added that this transition will open “new opportunities for Stellantis in the defence sector.”
Roman Shimonov, founder and CEO of Roshel, mentioned that the company’s objective is to establish a new centre of excellence for advanced manufacturing “which will enable Canadian firms to better serve clients domestically and export to allied markets.”
“This initiative aligns with Canada’s defence industrial strategy, enhancing our domestic manufacturing capabilities, fostering local economic development, and providing essential manufacturing space and jobs in the Toronto region,” Shimonov stated in the release.
In an interview with CBC’s Hanomansing Live on Monday, Roshel CEO Roman Shimonov indicated that the firm plans to lease some of the facility’s space back to Stellantis, but clarified that Roshel will not be taking on any obligations made by Stellantis.
Shimonov expressed that it is in Roshel’s best interest to utilize as much of the plant as feasible, adding that they hope to attract a significant European automaker, whose identity he did not disclose. He mentioned that Roshel has received a letter of intent from this manufacturer and that the plant will not be limited to producing defence vehicles.
“Our aim is to create thousands of jobs, and we will prioritize hiring Brampton locals,” he stated.
In September, Stellantis entered into a memorandum of understanding with Roshel for the prospective sale of the facility.
Over 2,000 workers laid off when plant idled in 2023
When operations ceased at the Brampton plant in 2023, more than 2,000 workers were laid off.
In August, the union reported it had been informed that Stellantis was contemplating the closure and sale of the facility. The plant was initially slated for retooling to produce Jeep vehicles, a process that was set to commence in early 2024, but the company suspended those plans 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.
Subsequently, the company disclosed that it would shift production of the Jeep Compass to the U.S. This move was described by the union as a breach of its existing collective agreement, leaving the plant in a state of indefinite idleness.
The announcement regarding the sale coincides with ongoing contract negotiations between Stellantis and the union representing over 9,000 of its Canadian workers, which remain at a standstill.
Tensions have arisen between the two parties regarding the future of the Brampton facility and job security issues. Last month, Stellantis employees in Canada voted overwhelmingly to authorize a potential strike, with 97.3 percent in favor of granting their union the mandate.
At that time, Unifor indicated that a strike would still be a “last resort” and expressed hope for a resolution with the automaker.
Federal ministers call for return to bargaining talks
In a statement shared on social media platform X on Monday, Industry Minister Mélanie Joly remarked that the decision to sell the plant does not “erase the commitment” Stellantis made to its employees.
“We are focused on finding solutions for the more than 2,000 impacted workers and their families. They deserve answers, respect, and, most importantly, a secure future,” Joly stated.
Industry Minister Mélanie Joly, pictured here during question period on Parliament Hill in Ottawa on Nov. 4, said Monday that the decision to sell the plant doesn’t ‘erase the commitment’ that Stellantis made to its workers. (Adrian Wyld/The Canadian Press)
Joly called for all parties to return to the negotiating table, stating she has reached out to representatives from Stellantis, Unifor, the Ontario government, and the Brampton plant to arrange a meeting later this week.
“I expect them to come to the table with a singular focus: preserving good-paying jobs in Brampton,” Joly remarked.
“For Brampton’s automotive workforce, turning away is not an option. We are unwavering in our commitment to protect and grow Canada’s automotive sector in Brampton and nationwide.”
‘Families deserve answers,’ minister says
International Trade Minister Maninder Sidhu, also the MP for Brampton East, expressed support on X for Joly’s call to resume negotiations.
“More than 2,000 assembly workers in Brampton and their families deserve clarity about their future,” Sidhu stated.
“This facility has been integral to our city’s automotive industry for generations. Stellantis has made commitments to these workers, and it must fulfill 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 affirmed that the federal government will persist in advocating for the plant to provide well-paying employment in Brampton.
‘We’re angry today in Brampton,’ mayor says
Brampton Mayor Patrick Brown remarked in an interview that Stellantis bears a legal responsibility to Canadian taxpayers regarding the production incentives it received for manufacturing vehicles in the city, as well as a moral obligation to the Unifor Local 1285 members who have labored diligently for decades at the facility.
“Today, we are angry in Brampton,” Brown stated on Monday. “Stellantis has a duty they cannot evade.”
Brown pointed out that the announcement lacked specific details about what will be produced at the plant. He also noted that the land where the plant is located is designated for automotive manufacturing.
“If we permit Stellantis to abandon its responsibilities in Brampton, we should not assume there won’t be further repercussions across the country. This is the heart of Canadian automotive production. If we allow Stellantis to escape without consequences, we are effectively accepting the decline of automotive manufacturing in Canada,” Brown expressed.
Brown has called on Roshel to collaborate directly with the local union to explore employment and training options for the displaced Brampton autoworkers.
The sale is anticipated to be finalized by the close of this year, pending specific conditions, including government and regulatory approvals.