Stellantis has found a potential buyer for its Brampton Assembly Plant in Canada, the automaker told WardsAuto on Friday, throwing a wrench into ongoing labor negotiations with Unifor, the country’s largest auto union.
The automaker did not provide details of a sale price or timeline but confirmed it had “entered into a memorandum of understanding” regarding the plant with Roshel, an armored vehicle manufacturer.
Stellantis had been looking to sell the plant since at least Aug. 12, when it informed the union of ongoing talks to do so. The facility has not assembled a vehicle since December 2023, after production at the plant was halted for a retooling project that was ultimately paused in 2025.
“Following consideration of a number of potential opportunities, Stellantis believes that Roshel represents a strong path to restoring sustainable operations at Brampton Assembly, preserving the site's strategic role in Canada's advanced manufacturing sector and helping to avoid a prolonged period of inactivity,” LouAnn Gosselin, head of Canada communications at Stellantis, told WardsAuto in an email.
Roshel did not reply to a request for comment from WardsAuto. However, CEO Roman Shimonov told Canada’s CBC News the military equipment maker aims to create a “Canadian Centre of Excellence for Defence Manufacturing” in Brampton, Ontario, and is prepared to offer laid-off Unifor workers first consideration so they can return to work as early as 2026.
The future of the Brampton Assembly Plant has been a point of tension in recent contract talks with Unifor, the labor union that represents most auto workers in Canada. Unifor has already signed new 3-year contracts with General Motors and Ford Motor Co. that included commitments to invest further in existing facilities, and was hoping to reach a similar deal with Stellantis by Sept. 11.
But Stellantis’ efforts to explore a sale of Brampton Assembly Plant led to an impasse in contract talks, according to the union.
“Unifor has been consistent in its position that there will be no tentative settlement without a suitable resolution for Local 1285 members at Brampton. The union has reiterated this position to both the company and government officials,” the union said. “Absent a resolution, formal contract talks between Unifor and Stellantis are paused until further notice.”
Stellantis and Unifor began formal labor negotiations on Sept. 1. Their contract, which also covers labor at the Windsor Assembly Plant and Etobicoke Casting Plant, expires at 11:59 p.m. on Sept. 20, 2026.
Stellantis has 32 manufacturing facilities in North America, including assembly, powertrain, transmission, casting and machining operations. Although the idled Brampton Assembly Plant remains one of just three facilities in Canada, Stellantis’ spokesperson said the automaker remains committed to the industry there.
“For more than 100 years, Stellantis has invested in and grown with Canada, and we remain committed to supporting Canadian jobs, innovation and the long term competitiveness of the country's automotive sector,” Gosselin said. “Out of respect for the collective bargaining process with Unifor, we will not comment further at this time.”
