Unifor reports that Stellantis is thinking about selling its Ontario plant, which raises new worries regarding Canadian manufacturing and the hundreds of millions in government support.
On the Dash:
The uncertainty surrounding Brampton might influence future product allocation and vehicle availability from Stellantis in Canada. Potential plant closures or shifts in production could alter Stellantis’ manufacturing landscape across North America. Ongoing tariff discussions pose a significant risk for dealers and vehicle pricing in Canada.
Stellantis is contemplating shutting down and selling its idle Brampton Assembly Plant in Ontario, according to Unifor’s announcement on Friday, adding to the uncertainty around Canadian production and over $1 billion in federal and provincial funding committed to the facility.
Unifor stated that Stellantis informed the union on August 12 that it plans to engage with another company regarding a potential sale. Unifor National President Lana Payne shared with reporters on Friday in Toronto that the company hasn’t provided the formal one-year written notice mandated by their collective agreement before any closure or sale. She described this situation as a “lose-lose scenario” for workers on both sides of the border.
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The Brampton Assembly last produced a vehicle in December 2023 but began retooling in January 2024 to prepare for the next-generation Jeep Compass, initially set for launch in 2026. However, that retooling was paused in February 2025 due to U. S. tariff threats, and by October 2025, it was announced that Compass production would move to a reopened facility in Belvidere, Illinois, as part of a $13 billion investment plan. Since then, the plant has remained closed, leaving nearly 3,000 union workers laid off, including around 2,200 represented by Unifor Local 1285.
As reported by The Canadian Press, Lou Ann Gosselin from Stellantis Canada mentioned that they are preparing to start collective bargaining talks with Unifor since their contract expires this September and there’s no further news at this time.
Dispute Over Government Funding
In 2022, Ottawa promised up to $529 million while Ontario pledged up to $513 million to assist Stellantis with retooling its Windsor and Brampton plants for EV production. However, records indicate Ottawa had already disbursed over $220 million before Stellantis announced its shift to Illinois; meanwhile, Ontario has withheld its funds after Stellantis failed to meet job creation and project milestones related to Brampton.
Moreover, following a dispute resolution process lasting 30 days, the federal government issued a notice of default against Stellantis in December 2025. Industry Minister Melanie Joly has indicated possible legal action because she believes the automaker did not fulfill commitments linked with funding support. In addition, government representatives have been negotiating with Stellantis regarding this issue for almost a year without reaching public resolution.
Tariff Issues Increase Pressure
The U. S. imposed a hefty 25% tariff on imported vehicles starting in 2025 which led Canada to impose matching retaliatory tariffs on U. S.-made vehicles; initially offering exemptions for automakers who maintained Canadian operations. However, those exemptions were tightened for both Stellantis and General Motors come October 2025 after both companies reduced their manufacturing commitments here; escalating concerns among dealers regarding vehicle pricing across borders.
Canadian officials are still engaged in negotiations with U. S. authorities over broader tariff issues without any resolutions announced as of Friday.
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