Stellantis Sells Brampton After $1B Subsidy Dispute, New Owner Rejects Worker Obligations

Roshel’s proposed revival of Stellantis’ Brampton assembly plant now includes an unnamed major European automaker interested in Canadian production, but the prospective partnership comes without a finalized manufacturing contract or commitments to preserve the jobs and benefits of more than 2,200 displaced workers.

Roshel CEO Roman Shimonov disclosed during a CBC interview that the company had received a letter of intent from a European original equipment manufacturer seeking to establish vehicle production in Brampton.

Shimonov said Roshel had shared the document with the federal government, although the automaker’s identity and proposed production arrangements remain undisclosed.

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He acknowledged that the letter does not constitute a finalized agreement. Securing a firm production commitment would require Roshel to complete its acquisition and gain control of the facility.

The announcement introduces a potential alternative to the loss of conventional automotive assembly at Brampton, where Stellantis previously planned to manufacture the Jeep Compass before transferring production to Illinois.

Shimonov maintained that Roshel intends to retain the plant’s automotive manufacturing capabilities, producing civilian vehicles alongside defence equipment.

Thousands of jobs while excluding worker obligations

The company’s longer-term ambitions extend beyond the 700 to 1,000 potential employment opportunities for displaced Stellantis workers previously reported by The Canadian Press.

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Shimonov said Roshel aims to employ thousands of people across its proposed manufacturing operations, prioritizing Brampton residents. However, he explicitly stated that Roshel would not assume Stellantis’ previous obligations to employees.

“We’re not taking over responsibilities or obligations that Stellantis made in the past,” Shimonov said, speaking to Ian Hanomansing on CBC’s Hanomansing Live.

He also declined to specify whether future Roshel employees would receive compensation and benefits comparable to those under Stellantis’ collective agreement.

Roshel’s larger employment ambitions predate the acquisition. In July, Shimonov discussed creating thousands of jobs if the company secured a major Canadian military vehicle procurement contract.

$1.04 billion subsidy dispute remains

The ownership transition also leaves unresolved the government’s financial dispute with Stellantis. Ottawa and Ontario committed up to $1.042 billion in 2022 to support the automaker’s combined Windsor and Brampton modernization program.

Federal records show approximately $222.4 million had been disbursed across the two facilities by March 31, 2025. Ottawa subsequently suspended further payments following Stellantis’ decision to move Jeep production to the United States.

The federal government issued Stellantis a formal notice of default in December 2025. The amount potentially recoverable remains undisclosed.

Unifor condemned the sale on Monday, alleging that Stellantis breached its labour and government commitments. Stellantis says it remains prepared to negotiate a settlement with Unifor.

Industry Minister Mélanie Joly maintained that selling Brampton does not eliminate Stellantis’ responsibilities to affected workers.

Under the asset purchase agreement, Roshel will acquire the plant and equipment for an undisclosed amount, with closing expected before year-end. The Canadian Press also reported plans for Stellantis to lease approximately one-quarter of the facility for automotive activities.

In September, Joly said Ottawa is applying “maximum pressure” on the automaker to commit a new model to the site.

Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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