Stellantis has reached an agreement to sell its Brampton Assembly Plant to Canadian defence manufacturer Roshel, drawing sharp criticism from Unifor, which says the deal violates the automaker’s commitments to workers and threatens thousands of Canadian automotive jobs.
The companies announced Nov. 9 that Roshel would acquire the Ontario facility and associated equipment for an undisclosed amount. The transaction is expected to close by the end of 2026, subject to regulatory approvals and other closing conditions.
Roshel plans to transform the facility into a Centre of Excellence for advanced manufacturing, while the two companies have established a strategic co-operation framework to explore future opportunities involving defence vehicle technologies and related services.
Unifor, however, condemned the agreement, accusing Stellantis of abandoning its obligations to workers and undermining Canada’s automotive manufacturing sector.
“Stellantis has betrayed our members with an underhanded deal to sell the plant and walk away from its commitments to our members,” said Unifor national president Lana Payne. “Allowing the sale to move forward is a critical failure of the national auto strategy and breaks the federal government’s promise to protect autoworkers in the U.S. trade war.”
The union alleges the sale violates its collective agreement with Stellantis and breaches commitments the automaker made to the federal government.
Unifor said it had been working toward four-party discussions involving Stellantis, the federal and Ontario governments, and the union to address the company’s future manufacturing operations in Canada before the sale was announced.
“This was not an inevitable outcome. A plan to keep the plant as part of Canada’s auto footprint was possible had the company been committed to finding it and governments applied every measure to prevent the sale,” said Payne. “Selling the Brampton Assembly Plant to a defence contractor is a significant step backwards for Canada’s industrial economy. Over and above the thousands of high-paying jobs that will be lost at Stellantis, Canada will also lose thousands more in its auto parts supplier base.”
In February, Brampton City Council unanimously approved amendments to municipal zoning bylaws designating the assembly plant property for automotive assembly and related manufacturing uses.
Unifor is calling on Brampton Mayor Patrick Brown and Ontario Premier Doug Ford to enforce that designation and take steps to protect automotive jobs.
Vito Beato, vice-chairperson of the Unifor Stellantis Master Bargaining Committee and president of Local 1285, questioned whether Roshel’s plans would replace the automotive jobs affected by the sale.
“The reality is that thousands of good-paying Canadian auto jobs are being sacrificed permanently in exchange for hundreds of hypothetical jobs that depend on military procurement contracts that haven’t even been awarded yet.”
Stellantis said the agreement creates a path to return the Brampton facility to industrial use after employees have spent three years on paid layoff.
“Brampton employees have made lasting contributions to Stellantis, and we take our responsibilities to them and their families seriously. After three years of paid layoff, we remain committed to working with Unifor on a fair resolution,” said Antonio Filosa, Stellantis CEO. “With this announcement, we are driving forward our broader strategic goals, opening new opportunities for Stellantis in the defence industry and creating a path to return the Brampton facility to productive industrial use.”
The company acknowledged its obligations under the collective agreement and applicable laws and said it remains prepared to negotiate a settlement for union-represented employees.
Roshel, headquartered in Brampton, manufactures armoured vehicles and has deployed more than 2,500 vehicles to Ukraine. Its proposed manufacturing centre would support Canadian defence production and exports to allied markets.
“Our plan is to create a new Centre of Excellence for advanced manufacturing, which will allow Canadian companies to better serve customers at home and export into allied markets. Aligned with Canada’s Defence Industrial Strategy, it will strengthen our sovereign industrial capabilities, drive local economic growth and bring much-needed manufacturing space and jobs to the Toronto area,” said Roman Shimonov, founder and CEO, Roshel. “We look forward to working collaboratively with government and the broader community to bring this vision to life.”
The sale aligns with Stellantis’ FaSTLAne 2030 strategy, which targets approximately 80 per cent manufacturing capacity utilization across North America by 2030.
The automaker said it will maintain its Canadian operations, including the Windsor Assembly Plant, Etobicoke Casting Plant, Automotive Research and Development Centre in Windsor and CpK operations. Stellantis employs more than 10,000 Canadians outside the Brampton facility.
Unifor warned the sale could raise concerns about the security of other Stellantis manufacturing operations in Canada.
“This is a terrible day for all of our members at Stellantis. If the company can tear up our collective agreement and walk away from Brampton then there are no guarantees for the rest of its production in Canada,” said James Stewart, Unifor master bargaining chairperson and president of Local 444.
Neither Stellantis nor Roshel disclosed how many jobs the proposed manufacturing centre would create or when production could begin.
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