Canada Union Says Stellantis Eyeing Sale of Toronto-Area Plant

By Paul Vieira

OTTAWA--The union representing Canada's auto workers says Stellantis has disclosed its intention to sell a Toronto-area factory that's been at the focus of dispute between Ottawa and the auto maker.

Lana Payne, president of Unifor, said Stellantis informed the union this week it is considering closing the factory and selling the plant. The factory in Brampton, Ontario was supposed to produce the auto maker's Jeep Compass model, but Stellantis last year said it would shift manufacturing to Illinois, as pressure mounted from President Trump for car companies to shift operations to the U.S.

"What the company has indicated is its intent to open discussions with another firm" about a sale, said Payne, according to a video clip posted by Canada's Global News on social media. "To say that we are disappointed would be an understatement. This is a gut punch to our union and to our members."

A spokeswoman for Stellantis did not immediately return a request for comment. Previously, the company has said it was evaluating future production plans for the plant.

Canadian officials have threatened to sue Stellantis for failing to meet its pledge to assemble the Jeep Compass in Brampton. Canadian officials and Stellantis have been in talks for nearly a year, as Ottawa attempts to recoup financing the government provided to the auto maker to retool its Brampton plant.

Auto manufacturing in Canada has taken a hit following Trump's decision to slap a 25% tariff on foreign-made automobiles. Canadian officials are in Washington in talks to ease those auto duties and avert administration plans to impose a 50% tariffs on certain goods starting next week.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

August 14, 2026 15:18 ET (19:18 GMT)