Stellantis has announced the sale of its assembly plant in Brampton, Ontario to Canadian armoured vehicle manufacturer Roshel. Financial terms of the transaction have not yet been disclosed.
The agreement covers the facilities and associated equipment. The deal is expected to close by the end of 2026, subject to certain conditions, including government and regulatory requirements. For the roughly 2,200 workers, however, the announcement leaves several questions unanswered.
A new vocation for the Brampton plant
Stellantis ceased automotive production in Brampton at the end of 2023. The automaker subsequently promised to assemble the Jeep Compass there following retooling work, before transferring that project to the United States.
This bit of very bad news for Brampton and for Ontario auto workers doesn’t come out of nowhere. Recall that Stellantis signed a memorandum of understanding with Roshel back in September regarding a potential transaction.
The armoured vehicle manufacturer now aims to establish an advanced manufacturing hub at the site to serve its Canadian clientele and supply allied markets. Stellantis and Roshel also indicate they are exploring possibilities for collaboration in automotive technologies and defense-related services.
However, the question of jobs remains completely unresolved. Quoted by Automotive News, Vito Beato, president of Unifor Local 1285, cast doubt on Roshel's ability to replace the lost positions.
Unifor challenging the sale
This announcement comes as negotiations between Stellantis and Unifor are, to put it mildly, tense. The union has been without a collective agreement with the automaker since September 20. In October, workers voted 97.3 percent to authorize potential strike action, an option Unifor continues to present as a last resort.
"Stellantis has betrayed our members," said union national president Lana Payne in a statement reported by Automotive News. The union maintains that by shuttering and now selling the plant, Stellantis is reneging on commitments it made, commitments that resulted in substantial support from the Ontario government. It points out that Roshel will produce armoured vehicles at just a fraction of the rate Stellantis produced vehicles at in the plant, meaning there is no way all of the workers now left out in the cold will be taken on by Roshel.
The automaker's Chief Executive Officer, Antonio Filosa, claims he wants to reach a fair resolution with the union and presents the transaction as a way to return the plant to active operations.
Federal Industry Minister Mélanie Joly also reacted. According to a statement relayed by the Canadian Press, she believes the sale does not erase Stellantis's commitments to the Brampton workers. She intends to bring the involved parties together to discuss their future.
Repercussions for suppliers
The consequences of the sale extend beyond the walls of the plant. Flavio Volpe, president of the Automotive Parts Manufacturers' Association, told Automotive News that Canadian suppliers had factored the resumption of production at Brampton into their long-term planning. Obviously, that planning will have to be revisited.