Stellantis Clinches Deal to Sell Canadian Factory to Defense Firm — Update

By Paul Vieira

OTTAWA--Stellantis finalized a deal Monday to sell a Toronto-area factory to armored-car maker Roshel as the auto maker focuses on revamping its industrial output.

The transaction, should it close as anticipated by the end of the year, would bring an end to car manufacturing at the Brampton, Ontario factory, which has emerged as a flashpoint in the U.S.-Canada trade tensions. It is also likely to trigger the threat of labor strife among the company's unionized Canadian employees. Unifor, the union representing Canadian auto makers, said the auto maker's Brampton plans prompted an impasse in talks on a new deal, and called on Prime Minister Mark Carney to block a sale.

"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," Stellantis Chief Executive Antonio Filosa said in a statement.

Stellantis is in the midst of a turnaround plan, in which the bulk of investment is focused on key brands like Jeep and Peugot; manufacturing capacity is realinged; and the company identifies cost savings.

Roman Shimonov, the founder and CEO of Roshel, said he wants to build a top-flight manufacturing operation, adding the transaction promises to drive job creation in Canadian manufacturing. Shimonov had previously said that Roshel was ready to bring affected Stellantis workers on board as part of the new production facility.

The reassurances didn't sit well with Lana Payne, president of Unifor. She said Stellantis "betrayed" the company's 9,000 unionized workers "with an underhanded deal to sell the plant and walk away from its commitments."

Stellantis said in September it was contemplating a sale of the Brampton factory to Roshel, as a return to auto production was deemed financially unfeasible.

The Brampton plant has remained idle since 2024 due to retooling, and Stellantis had plans to manufacture the next-generation Jeep Compass at the Canadian factory. However, those plans changed after President Trump imposed hefty tariffs on foreign-made vehicles.

Instead, Stellantis said it would shift production of the Jeep Compass to Illinois, citing trade and market conditions. That move angered Canadian officials, given that federal and regional governments provided over $700 million in taxpayer-backed financing to retool the Brampton factory, as well as a plant in Windsor, Ontario.

Canadian officials threatened on several occasions to sue Stellantis to recoup the money. Payne, the union president, said the Stellantis-Roshel deal marks "a critical failure of the national auto strategy and breaks the federal government's promise to protect autoworkers in the U.S. trade war."

A spokesman for Canadian Industry Minister Mélanie Joly did not immediately respond to a request for comment. Joly has repeatedly said that Stellantis should resume motor-vehicle production in Brampton.

Stellantis workers voted in last month to formally give Unifor the mandate to pursue a strike in Canada amid stalled talks, focused in part on the Brampton factory's future.

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

The Canadian government had threatened to sue Stellantis

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

(END) Dow Jones Newswires

November 09, 2026 17:37 ET (22:37 GMT)