The maker of Chrysler, Dodge and Jeep on Monday said it has signed an agreement to sell its idled assembly plant outside Toronto to a Canada-based defense manufacturer — a move the the Canadian autoworkers union called a "betrayal."

The sale of Brampton Assembly Plant to Roshel for an undisclosed amount comes amid negotiations between automaker Stellantis NV and Unifor, the labor group. A previous contract expired last month, and the parties had been at an impasse in negotiations starting in September, with members voting to authorize a strike in October after Stellantis shared its intentions to sell the plant to Roshel.

However, Unifor said prior to Monday's announcement, the union was in the process of finalizing a four-party discussion with Stellantis and the Ontario and Canadian governments about the automaker's future production footprint in the country.

Meanwhile, Stellantis is seeking to cut costs and achieve approximately 80% manufacturing utilization in North America by 2030 to strengthen long-term competitiveness. The announcement also includes a cooperation framework to explore global collaboration in the defense sector between Stellantis and Roshel. The U.S. government has approached domestic automakers to help boost military manufacturing, munitions production and vehicle supply chains amid global conflicts.

Sale of the former Chrysler 300 and Dodge Charger and Challenger plant is expected to close by the end of the year, pending regulatory approvals, affecting 2,200 Unifor members employed there. Stellantis in a news release acknowledged its obligations to employees under the collective agreement and applicable laws. The company said it's prepared to engage with Unifor to negotiate a settlement to assist union represented employees.

“Brampton employees have made lasting contributions to Stellantis, and we take our responsibilities to them and their families seriously. After three years of paid layoff, we remain committed to working with Unifor on a fair resolution,” Stellantis CEO Antonio Filosa said in a statement. “With this announcement, 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.”

Unifor President Lana Payne, however, criticized the announcement as Stellantis turning its back on its employees and a failure of Canadian policy to support domestic manufacturing, decrying thousands of more job losses that will stem from the closure of supplier plants. Unifor's position is that the sale is a violation of its collective agreement and a breach of commitment to the Canadian government.

“Stellantis has betrayed our members with an underhanded deal to sell the plant and walk away from its commitments to our members,” Payne said in a statement. “Allowing the sale to move forward is a critical failure of the national auto strategy and breaks the federal government’s promise to protect autoworkers in the U.S. trade war.”

Brampton City Council in February voted to amend zoning bylaws to designate the plant's property for automotive assembly and related automotive manufacturing uses. The union is urging Mayor Patrick Brown and Premier Doug Ford to take actions to enforce that designation.

The Detroit News on Monday evening sent inquires to media representatives for the city of Brampton, the province of Ontario and the federal Finance Ministry for comment on the sale.

Vito Beato, Unifor Stellantis master bargaining committee vice-chairperson and president of Local 1285, which represents members at Brampton, added in a statement that procurement contracts to fill the plant haven't been secured, making job promises "hypothetical."

Roshel CEO Roman Shimonov said the technology company he founded looks forward to working with government and the broader community to bring production to Brampton again.

“Our plan is to create a new Centre of Excellence for advanced manufacturing which will allow Canadian companies to better serve customers at home and export into allied markets," Shimonov said in a statement. "Aligned with Canada’s Defence Industrial Strategy, it will strengthen our sovereign industrial capabilities, drive local economic growth, and bring much-needed manufacturing space and jobs to the Toronto area."

Brampton 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 continues to employ more than 10,000 Canadians in addition to Brampton Assembly, including at Windsor Assembly Plant, Etobicoke Casting Plant and the Automotive Research and Development Centre in Windsor and its interior components business CpK Interior Products.

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