The news
Stellantis agreed to sell its Brampton Assembly Plant near Toronto to Canadian armored vehicle maker Roshel. The plant has been idle since late 2023 and once employed about 3,000 unionized workers.
Roshel is one of two finalists for a Canadian military contract worth up to C$4.9 billion (US$3.5 billion) to supply light utility vehicles. It would build the vehicles at Brampton if selected.
“Canada will have given up a lucrative auto assembly and supply chain capacity," said Lana Payne, national president of Unifor, which represents the plant's laid-off workers.
Why it matters: An idle Canadian auto plant is changing hands to a defense manufacturer as US-based automakers lose ground in Canada's vehicle industry. They accounted for just 23% of Canadian light-vehicle production in 2025, down from 56% in 2016.
The details
Stellantis idled Brampton after abandoning plans to build the Jeep Compass there following the US imposition of 25% tariffs on imported vehicles. The Compass will instead be built in Illinois. Retooling for the model began in early 2024 but was paused in early 2025.
Canada's industry department sued Stellantis to recover hundreds of millions of dollars in government aid, alleging the company broke its commitments by moving the Jeep production.
A 2022 agreement shows Ottawa pledged up to C$529 million for projects at Brampton and Windsor, Ontario.
Stellantis says it has offered to return the support it received for the Brampton retooling plan.
Roshel plans to build on the plant’s automotive capabilities, starting with the military vehicle contract. CEO Roman Shimonov said in September that the company would also pursue other vehicle manufacturing and defense work there, “adding defense on top of the automotive production capabilities.”
Roshel’s bid includes partnerships with Ontario's Algoma Steel and Swedish steelmaker Swebor Stal Svenska.
The Swebor partnership would establish Canada’s first plant dedicated to producing ballistic-grade steel.
The sale has prompted a fight over the plant’s future and its workers. Industry Minister Mélanie Joly asked Unifor, Stellantis and the Ontario government to meet later this week to discuss the workers' future.
"For Brampton’s auto workers, walking away is not an option,” Joly said.
Stellantis CEO Antonio Filosa said the company remains “committed to working with Unifor on a fair resolution.”
Unifor accused Stellantis of betraying its members with an “underhanded deal to sell the plant.”
Ottawa controls eligibility for Canadian military contracts, but its authority over a private sale between the two companies is less clear.
The sale also comes as US-based automakers lose share of Canadian vehicle production. They built 23% of the country's light vehicles in 2025, down from 56% in 2016. Canada produced 1.2 million light vehicles last year, about half its 2016 total, per the Trillium Network for Advanced Manufacturing.
Three of the five Canadian assembly plants owned by US-based automakers are idle, while a fourth is operating below capacity.
Honda and Toyota each built more vehicles in Canada than Ford, GM and Stellantis combined in both 2024 and 2025.
What’s next
Stellantis expects the sale to close by the end of the year. Roshel’s plans for the plant depend in part on whether it wins the military vehicle contract.
