Union believes Stellantis has sold idled Brampton auto plant to Roshel

BRAMPTON · The Unifor union believes automaker Stellantis has sold its idled Brampton assembly plant to defence contractor Roshel Inc. Union representatives met with the company on Friday to ask about reports of a sale. Stellantis would not confirm or deny whether a deal was finalized. Unifor national president Lana Payne said the union is interpreting this refusal as confirmation that the Brampton Assembly Plant has been sold. A source familiar with the matter said the sale is expected to be announced early next week. The source, who is not authorized to speak publicly, said Stellantis plans to sell the plant to Brampton-based Roshel and then lease it back for production. As part of the arrangement, Stellantis would also repay federal government funds it received to retool the facility after it closed in 2023. Spokespeople for both Stellantis and Roshel said in separate statements that they had nothing to announce.

The automaker signed a memorandum of understanding with Roshel for a potential sale in September. Stellantis had initially planned to build the Jeep Compass at the Brampton factory but shifted that production to Illinois last year. That move angered the union and the federal government, which said it violated the terms of the company's funding agreement. Unifor, which represents about 3,000 workers laid off from the plant nearly three years ago, walked away from collective bargaining with Stellantis over the planned sale in September. Last month, Stellantis workers voted to give their union a strike mandate. Yadude Books reported in October that negotiations were deadlocked over job security and the future of the idled plant. Fraser Johnson, a professor at Western University's Ivey School of Business, said the sale appears to be part of Stellantis's efforts to address global challenges including poor profits, low vehicle sales and excess capacity.

Johnson said U.S. tariffs further weakened the business case for operating the plant. For Roshel, a maker of armoured vehicles, the deal represents a rare chance to acquire a world-class facility. However, Johnson noted that Roshel's smaller production runs will not generate the same level of employment, supply chain activity or economic benefits as a major auto assembly operation. Innovation, Science and Economic Development Canada and the office of Industry Minister Mélanie Joly did not respond to requests for comment.

With files from The Canadian Press, BNN Bloomberg and The Globe and Mail