Stellantis Sells Idled Brampton Plant to Defence Contractor Roshel Amid Political Backlash

Stellantis NV has agreed to sell its idled Brampton, Ont., auto assembly plant to Canadian defence contractor Roshel Inc. and offered to voluntarily repay federal retooling funds. The sale follows Stellantis' decision to halt work at the facility in 2025 after U.S. tariffs were imposed, prompting sharp criticism from Prime Minister Mark Carney, Conservative Leader Pierre Poilievre, and the Unifor union.

Stellantis NV announced it has agreed to sell its idled auto assembly plant in Brampton, Ont., to Canadian defence company Roshel Inc. Editorial illustration Following the announcement, the automaker offered to voluntarily repay money the federal government provided to retool the facility, though it cannot disclose the specific amount due to confidentiality provisions.

The Brampton plant was halted in 2025 after the United States imposed 25-per-cent tariffs on Canadian-made cars. Stellantis subsequently moved planned Jeep Compass production from Brampton to Illinois. Industry Minister Mélanie Joly previously stated that shifting production and leaving the plant idle violated the funding agreement, threatening legal action to recoup public funds. A 2022 agreement outlined a maximum federal contribution of $529 million for the Brampton and Windsor plants, while reports also cite a separate $15 billion joint federal-provincial commitment made in 2023 for an electric vehicle battery facility in Windsor.

Prime Minister Mark Carney described the sale agreement as a "betrayal" to Canadians and stated the government will enforce its rights to protect workers and funds. Conservative Leader Pierre Poilievre called on Prime Minister Carney to fire Industry Minister Joly, accusing her of costing Canadians jobs and failing to act despite years of threats. Editorial illustration

Unifor national president Lana Payne called the sale "unacceptable" and devastating for the Canadian industry and workers. Unifor represents more than 9,000 Stellantis workers in Canada, and the sale occurs amidst ongoing contract negotiations between the automaker and the union.

A meeting of all stakeholders is scheduled for Thursday to discuss ways to move forward regarding the situation.

Sources