Stellantis has told union leaders it is seriously weighing the shutdown and sale of its Brampton Assembly Plant in Ontario, Unifor president Lana Payne announced on Friday.
Stellantis plans for Brampton plant
Payne said the company had previously reassured the union that it remained committed to Canadian production after announcing in October that the next generation of the Jeep Compass would be built at a plant in Illinois instead of Brampton. "Stellantis notified us that it would move the future Jeep Compass production slated for Brampton to the United States, idling the plant indefinitely," she told reporters in Toronto. "Throughout this entire time it has reiterated its commitment to Brampton and our members."
"On Wednesday I received information that the company is now seriously considering the closure and sale of the Brampton Assembly Plant," Payne added.
Implications for Canada and United States auto trade
The timing coincides with high‑level trade talks in Washington and the scheduled implementation of a 50 per cent tariff package on Canadian‑made vehicles that will take effect on 19 August. The new duties include measures aimed specifically at the Canadian auto sector.
Payne argued that the tariffs threaten a balanced automotive supply chain that has existed under the United States‑Mexico‑Canada Agreement. "This is not an industry that should be subjected to tariffs from the United States. Our trade in auto is completely balanced with the United States," she said. "Canada is not the problem. If we are in a bilateral discussion now with the United States, the solution should be no tariffs on the auto industry."
Should the plant close, the loss of up to 1,400 jobs would affect the labour market in the Greater Toronto Area and could pressure the Canadian government to seek concessions in the ongoing negotiations. The decision also raises questions about the future of Canada's role in the North American automotive supply chain, especially as manufacturers reassess production footprints in response to trade policy uncertainty.
Stellantis has not disclosed a timeline for any final decision, and the union said it will continue to press the company for clarity on the plant's status and the broader impact on Canadian workers.
Based on reporting by Global News.