Stellantis says it has officially signed an agreement with defence contractor Roshel to sell its idled Brampton, Ont., assembly plant.
Under the asset purchase agreement, Roshel will acquire the facility and associated equipment from the automaker for an undisclosed amount.
The companies said in a joint news release they are also exploring future collaboration opportunities across vehicle technologies and related services in the defence industry.
The move comes as contract talks between Stellantis and the union representing more than 9,000 of its workers in Canada remain at an impasse.
The two sides have clashed over the future of the Brampton site as well as issues around job security. Last month, Stellantis workers in Canada voted to give their union a mandate to strike, with 97.3 per cent of members in favour of authorizing a potential job action.
Unifor said at the time a strike was still its “last resort” and that it hoped to reach a deal with the automaker.
Talks broke down in September when Stellantis signed a memorandum of understanding with Roshel, a Brampton-based manufacturer of armoured vehicles, for a potential sale of the facility.
More than 2,000 workers were laid off from the Brampton plant when it halted operations in 2023.
The facility had been slated to be retooled for Jeep production, a process that began early in 2024, before the company paused the plan in early 2025. It later announced it was moving production of the Jeep Compass to Illinois, leaving the plant idled indefinitely.
“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 Stellantis CEO Antonio Filosa in a news release.
“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.”
Roshel founder and CEO Roman Shimonov said the company’s 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,” Shimonov said in the release.
“We look forward to working collaboratively with government and the broader community to bring this vision to life.”
As the facility returns to operations, there will be opportunities for around 700 to 1,000 laid off Stellantis employees to return to work under Roshel. The defence company also plans to lease around one-quarter of the site’s space back to Stellantis for automotive work.
The transaction is expected to close by the end of this year, subject to certain conditions, including government and regulatory requirements.
Unifor has previously written to federal Industry Minister Mélanie Joly urging the government to block the potential sale and clarify whether Stellantis’ intentions to offload the plant breached its commitments to Ottawa.
“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 in a statement.
“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.”
Last year, Prime Minister Mark Carney expressed disappointment over Stellantis moving Jeep Compass production to the United States.
At the time, the prime minister said he reminded Stellantis of its commitments to the government under funding deals — such as keeping the Brampton plant — and warned there would be consequences if it failed to meet those obligations.
Joly has said the government would “get our money back” if the company doesn’t fulfil its obligations. She said Monday that Stellantis’ decision “does not erase the commitments they made to workers in Brampton.”
“They deserve answers, respect and above all, a secure future,” Joly said in a statement.
The minister urged all parties to return to the bargaining table and said she has reached out to the automaker, union, Ontario government and representatives of the Brampton plant to convene a meeting this week.
“I expect them to come to the table with a single focus: protecting good paying jobs in Brampton,” Joly said.
“For Brampton’s auto workers, walking away is not an option.”
Stellantis said it acknowledges its obligations to employees under collective agreements and applicable laws and that it “remains prepared to engage with Unifor to negotiate a settlement to assist union represented employees.”
This report by The Canadian Press was first published Nov. 9, 2026.
By Sammy Hudes | Copyright 2026, The Canadian Press. All rights reserved.