September 11, 2026 4:00 PM, EDT
Roshel Inc., based close to the Stellantis facility in Brampton, Ontario, is pursuing a Canadian military contract potentially valued at C$4.9 billion for producing light utility vehicles. The company has informed Prime Minister Mark Carney’s government that it could swiftly restart operations at the site if awarded that contract.
Roman Shimonov, CEO of Roshel, stated that his firm is currently the only significant contender interested in buying the plant and described this memorandum as just the initial step in a “very complicated” process.
“It’s a document that clearly specifies the plan, the responsibilities, the framework and everything else,” Shimonov said.
Lou Ann Gosselin, a spokesperson for Stellantis, confirmed that both companies have signed this document.
“After evaluating various opportunities, Stellantis believes that Roshel offers a solid path toward restoring viable operations at Brampton Assembly while maintaining its strategic importance within Canada’s advanced manufacturing sector and helping prevent an extended period of inactivity,” Gosselin stated.
The Stellantis facility once employed about 3,000 unionized workers but hasn’t produced anything since late 2023. A plan to manufacture Jeep Compass SUVs there was abandoned last year following President Donald Trump’s announcement regarding tariffs on foreign-made cars.
This cancellation led to outrage from the Canadian government which had previously provided hundreds of millions in financial aid to Stellantis. Currently, discussions are ongoing between the automaker and Unifor which represents workers at this plant.
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Last month Unifor announced it was told by Stellantis about possible plans to close and sell this plant. The mayor of Brampton, Patrick Brown recently told Bloomberg News that his office received several inquiries regarding this facility including one from China’s BYD Co.
Gosselin expressed that Stellantis has been operational in Canada for over 100 years and remains “committed to supporting Canadian jobs, innovation and long-term competitiveness within our automotive sector.”
The company won’t provide further comments due to ongoing negotiations with Unifor according to her remarks.
The union stated on Sept. 11 that it reached an “impasse” during talks with Stellantis mentioning concerns about the Brampton plant along with discussions involving Roshel as key factors.
“The company’s persistent proposal to close down and sell off the Brampton plant has obstructed progress in negotiations,” Unifor remarked in an email statement noting these proposed actions jeopardize their members’ compensation as well. “There is no economic substitute for automotive assembly work in Canada which includes extensive supply chains along with regional economic activities connected to high-quality union jobs.”
Flavio Volpe who leads Canada’s Automotive Parts Manufacturers’ Association expressed support for Roshel but does not agree with selling them this plant. He emphasized how much larger scale vehicle production is at Stellantis compared to what Roshel can achieve alone.
“That factory is crucial for around six decades of mass automotive production,” he noted adding “That translates into producing around 500 to 1,000 vehicles daily alongside employing around 3,000 staff inside plus another estimated 9,000-12,000 outside among suppliers and related services.”If discussed production lines remain unassigned within Stellantis’ future plans indicating they might still utilize this facility again later on.
“I believe we do need firms like Roshel here but not necessarily using this specific plant,” Volpe remarked.
The proposal from Roshel suggests they would collaborate with partners across various sectors while still aiming to introduce new vehicle projects alongside their own defense-focused initiatives at this location.
“This proposal isn’t meant as a replacement for an auto manufacturing site but rather aims at adding defense capabilities alongside existing automotive production,” Shimonov explained.
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