On the Dash:
- Brampton uncertainty could affect future Stellantis product allocation and Canadian vehicle supply.
- Plant closures or production shifts could reshape Stellantis’ North American manufacturing footprint.
- Ongoing tariff negotiations remain a key risk for Canadian dealers and vehicle pricing.
Stellantis is considering closing and selling its idled Brampton Assembly Plant in Ontario, Unifor said Friday, deepening uncertainty over Canadian production and the more than $1 billion in combined federal and provincial funding pledged to the facility.
According to Unifor, Stellantis notified the union on Aug. 12 that it intends to open talks with another company about a possible sale. Unifor National President Lana Payne told reporters Friday in Toronto that the company has not delivered the formal one-year written notice required by the collective agreement before a closure or sale. She called the situation a “lose-lose scenario” for workers on both sides of the border.
Although the Brampton Assembly last built a vehicle in December 2023, it then entered retooling in January 2024 to prepare for the next-generation Jeep Compass, which Stellantis originally planned to launch in 2026. The company paused that retooling in February 2025 amid U.S. tariff threats, and in October 2025 announced it would shift Compass production to a reopened plant in Belvidere, Illinois, as part of a $13 billion U.S. investment plan. Notably, the plant has sat idle since, leaving close to 3,000 union workers on layoff, including about 2,200 represented by Unifor Local 1285.
According to The Canadian Press, Stellantis Canada spokesperson LouAnn Gosselin said the company is preparing to enter collective bargaining talks with Unifor, whose contract with Stellantis expires in September, and has nothing further to announce.
Government funding dispute
In 2022, Ottawa pledged up to $529 million and Ontario up to $513 million to help Stellantis retool its Windsor and Brampton plants for EV production. However, federal records show Ottawa had already paid out more than $220 million before Stellantis revealed its Illinois shift, while Ontario has said it withheld its funding after Stellantis missed job and project milestones tied to Brampton.
Additionally, the federal government issued Stellantis a notice of default in December 2025 following a 30-day dispute resolution process, and Industry Minister Melanie Joly has threatened legal action, arguing the automaker broke commitments tied to the funding. Meanwhile, government officials have negotiated with Stellantis for close to a year over the dispute, without a public resolution.
Tariffs add further pressure
The U.S. imposed a 25% tariff on imported vehicles in 2025, prompting Canada to introduce matching retaliatory tariffs on U.S.-assembled vehicles, with initial exemptions for automakers that maintained Canadian production. Ottawa narrowed those exemptions for Stellantis and General Motors in October 2025 after both companies scaled back their Canadian manufacturing commitments, raising the stakes for dealers and vehicle pricing on both sides of the border.
Canadian officials continue to negotiate with the U.S. administration over the broader tariff dispute, with no resolution announced as of Friday.
