1 hr ago
Stellantis, Roshel Outline Sale of Idle Brampton Plant
Stellantis owns a large factory in Brampton, Canada, that has not made cars since late 2023.
The company has signed a memorandum with Roshel, an armored-vehicle maker, about possibly selling the factory.
A memorandum is a plan for working toward a deal, not a completed sale.
Roshel wants to use the factory to build military vehicles if it wins a Canadian government contract.
That contract could be worth as much as C$4.9 billion.
Roshel says it could bring back about 1,000 workers at first.
Some automotive industry leaders think the factory should continue making large numbers of regular vehicles instead.
Stellantis is negotiating with the Unifor union, which represents the former plant workers.
The possible sale is connected to changes in vehicle production after United States tariff plans affected Stellantis’s earlier plans for the site.
Stellantis N.V. and Roshel Inc. signed a memorandum outlining steps toward a possible sale of the idled Brampton Assembly plant in Ontario.
Roshel is seeking a Canadian military contract worth up to C$4.9 billion to build light utility vehicles at the facility.
The plant employed about 3,000 unionized workers before vehicle production stopped in late 2023.
Stellantis canceled plans to build the Jeep Compass there after proposed United States tariffs on foreign-made vehicles.
Roshel says it could initially restore about 1,000 jobs, while industry representatives argue the site should remain dedicated to high-volume automotive production.
- Who
- Stellantis N.V. and Roshel Inc. are considering a transaction involving the Brampton Assembly plant; Unifor represents the plant’s workers.
- What
- The companies signed a memorandum outlining steps toward a possible sale of the idled factory.
- Where
- Brampton, Ontario, Canada, near Toronto.
- When
- The plant has been inactive since late 2023, and the memorandum was reported while Stellantis was negotiating with Unifor.
- Why
- Roshel wants to reactivate the facility for armored and other defense-vehicle production if it wins a Canadian military contract, while Stellantis is considering options for the inactive site after canceling planned Jeep Compass production.
Roshel’s Defense-Industry Proposal
High-Volume Automotive Production
Best use of the facility
Roshel’s Defense-Industry Proposal
Roshel says the plant could combine armored-vehicle production with automotive-sector partnerships and additional defense work, rather than simply replace automotive manufacturing.
High-Volume Automotive Production
Flavio Volpe of Canada’s Automotive Parts Manufacturers’ Association says the site is the center of a high-volume automotive network and should remain capable of producing roughly 500 to 1,000 vehicles daily.
Employment potential
Roshel’s Defense-Industry Proposal
Roshel says winning the military contract could quickly restore about 1,000 jobs and support an estimated average of 4,530 direct and indirect jobs annually during three years of vehicle construction.
High-Volume Automotive Production
Volpe argues that the former automotive operation supported about 3,000 plant workers and an additional 9,000 to 12,000 people in suppliers and related services, implying a Roshel operation would be smaller.
Future of Stellantis production
Roshel’s Defense-Industry Proposal
Roshel presents its proposal as a way to reactivate the idle site and add defense production on top of its automotive capabilities.
High-Volume Automotive Production
Volpe says Stellantis still has unassigned production lines in its future plans and could eventually use the plant again.
Key facts
- Facility
- Stellantis’s Brampton Assembly plant in Ontario
- Plant status
- Vehicle production has been halted since late 2023
- Former workforce
- About 3,000 unionized workers
- Potential buyer
- Roshel Inc., a Canadian armored-vehicle manufacturer
- Potential contract
- A Canadian military contract worth up to C$4.9 billion
- Potential initial employment
- Roshel says it could bring back about 1,000 workers
- Earlier production plan
- Stellantis canceled plans to build the Jeep Compass at the plant
Quotes
LouAnn Gosselin
Stellantis spokesperson
“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.”
livemint.com
“I really think we need Roshel in this country, and we need a lot of Roshels, but we don’t need Roshel in Brampton at that plant.”
livemint.com
Sources
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