Stellantis NV said it has a tentative deal to sell its shuttered Brampton Assembly Plant in Canada to defense manufacturer Roshel — a development that quickly drew criticism from the Unifor autoworkers union that has urged the company to reopen and invest in the facility.

Unifor said in a Sept. 11 statement that it was at an impasse in collective bargaining negotiations with Stellantis after 10 days of talks, in large part due to the disagreement over the future of the 3 million-square-foot plant outside Toronto. The union has already reached new three-year deals with General Motors Co. and Ford Motor Co., with the current Stellantis agreement set to expire on Sept. 20.

"The persistence of the company’s proposal to close and sell the Brampton plant has hindered the bargaining process," the union said.

A sale would "threaten the wages, pensions and other benefits of Unifor members" who had worked at the plant before it closed and had sought to return, the union said. It added that there "is no economic substitute for automotive assembly in Canada."

The facility most recently made the Chrysler 300, Dodge Charger and Dodge Challenger sedans before production ended in late 2023. Workers and union officials had been awaiting the retooling and reopening of the plant to build a next-generation Jeep Compass last year, but that never happened as the company switched up its North American product strategy amid high U.S. tariffs on Canadian goods. Still, Unifor said it was assured by the company that Stellantis planned to invest in new programs for the plant.

Stellantis spokesperson LouAnn Gosselin confirmed Friday that the company has entered a memorandum of understanding with Roshel to take over the plant. The Canadian defense manufacturer designs and builds armored vehicles.

"Following consideration of a number of potential opportunities, Stellantis believes that Roshel represents a strong path to restoring sustainable operations at Brampton Assembly, preserving the site's strategic role in Canada's advanced manufacturing sector and helping to avoid a prolonged period of inactivity," a statement said. "For more than 100 years, Stellantis has invested in and grown with Canada, and we remain committed to supporting Canadian jobs, innovation and the long term competitiveness of the country's automotive sector."

The automaker declined to comment on the status of negotiations with Unifor. But the union expressed frustration over both the Brampton situation as well as a lack of specifics on the forecasted plans for two other key Canadian Stellantis factories: Windsor Assembly Plant and Etobicoke Casting Plant.

Unifor said there "will be no tentative settlement" in the talks without a "suitable resolution" for union members who are part of Local 1285 at Brampton, according to the statement from spokesperson Kathleen O'Keefe.

"Absent a resolution," Unifor said, "formal contract talks between Unifor and Stellantis are paused until further notice."

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