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Stellantis signs memorandum of understanding with Roshel for potential Canadian factory sale - Finance news and analysis from Global Banking & Finance Review
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Stellantis signs memorandum of understanding with Roshel for potential Canadian factory sale

Published by Global Banking & Finance Review

Posted on September 12, 2026

2 min read

· Last updated: September 12, 2026

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Stellantis Signs MoU with Roshel for Potential Sale of Brampton Factory in Canada

Stellantis and Roshel: Brampton Factory Sale and Labor Negotiations

By Kalea Hall

Memorandum of Understanding and Factory Plans

Sept 11 (Reuters) - Jeep maker Stellantis has signed a memorandum of understanding with Canadian armored vehicle maker Roshel outlining a potential sale of an idled Stellantis car factory near Toronto, the automaker said on Friday.

Stellantis said that, after considering several potential opportunities for the facility, the company "believes that Roshel represents a strong path to restoring sustainable operations at Brampton Assembly."

Roshel's Vision for Brampton Facility

Roshel CEO Roman Shimonov said in a statement on Friday that the company plans to establish a center for defense manufacturing in Brampton, Ontario, where the plant is located.

Bloomberg News first reported the memorandum of understanding.

Labor Negotiations and Union Response

Stellantis is in contract negotiations with Unifor, a Canadian union representing autoworkers at Stellantis, General Motors and Ford, to replace a deal that expires on September 20.

Commitments to Laid-off Workers

"We are ready to provide letters of commitment for first consideration to laid-off Unifor workers and bring them back to work as early as 2026," Shimonov said.

Unifor's Position and Ongoing Talks

Unifor has said it was at an impasse with Stellantis "following 10 days of intensive talks." The union said it has paused negotiations and is considering next steps.

Other Canadian Stellantis Plants

The company has not disclosed plans for its other Canadian plants: the Windsor Assembly Plant and Etobicoke Casting Plant, the union said.

Economic Settlement and Brampton Closure

"Stellantis has offered only conditional agreement with the economic pattern settlement tied to the closing of Brampton, creating added complications for reaching a deal," the union said in a statement, referring to a wage settlement.

Background on Brampton Plant

Last month, union leaders said Stellantis notified them it was considering closing and selling the Brampton plant.

Stellantis closed Brampton in 2023 for retooling. Stellantis paused that work in 2025 before moving future production of its Jeep Compass to a factory in Illinois, ​after U.S. President Donald Trump imposed tariffs on Canadian goods.

(Reporting by Kalea Hall in Detroit, Ruchika Khanna in Bengaluru and Divya Rajagopal in Toronto; Editing by Tasim Zahid, Mike Colias, Rod Nickel)

Key Takeaways

  • Stellantis explores strategic reuse of its idled Brampton plant by partnering with Roshel to shift from auto to defense manufacturing (unifor.org)
  • Roshel is a rapidly growing Canadian armored vehicle maker with a 140,000 sq ft facility, over 500 advanced manufacturing jobs, and strong defense ties including supplying Ukraine and bidding on major national contracts (investbrampton.ca)
  • The move comes amid stalled retooling at Brampton due to U.S. tariffs that diverted Jeep Compass production to the U.S., raising job security concerns among Unifor members and complicating labor negotiations (unifor.org)

References

Frequently Asked Questions

What is the agreement between Stellantis and Roshel about?
Stellantis and Roshel have signed a memorandum of understanding for a potential sale of the idled Brampton Assembly plant near Toronto.
What are Roshel's plans for the Brampton factory?
Roshel plans to establish a center for defense manufacturing at the Brampton location if the sale proceeds.
How does the potential sale impact Unifor autoworkers?
Roshel stated it is ready to give laid-off Unifor workers first consideration for new jobs, possibly bringing them back as early as 2026.
Why was the Brampton Assembly plant idled by Stellantis?
Stellantis closed the Brampton Assembly plant in 2023 for retooling and paused the process in 2025 after moving production of the Jeep Compass to Illinois.
What is the status of Stellantis' contract negotiations with Unifor?
Negotiations with Unifor are at an impasse, with talks paused as the union considers its next steps.

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