Stellantis considering sale of Canada plant, autoworker union says

By Kalea Hall and Wa Lone

TORONTO, Aug 14 (Reuters) - Canadian autoworkers union Unifor said on Friday it had been notified by Stellantis that the company is considering the closure and sale of its Brampton, Ontario, plant, blaming the impact of U.S. trade tariffs.

The potential closure would mark the end of decades of vehicle assembly at the Brampton site and comes as U.S. tariffs on Canadian goods roil the North American auto industry ahead of a trade deadline on Wednesday.

Brampton was closed for retooling in 2024, which Stellantis paused in 2025 before moving future production of its Jeep Compass to a factory in Illinois after U.S. President ​Donald Trump imposed the tariffs on Canadian goods.

Unifor will soon negotiate a new contract with Stellantis that covers Brampton, another assembly plant and a casting plant. The current contract expires in September.

Unifor President Lana Payne said the company had not provided a formal closure notice for Brampton but told the union it intends to open discussions with a firm about the potential sale of the plant. She declined to name the firm.

"This potential closure highlights the dangerous repercussions of the ongoing auto tariffs imposed by the Trump administration," Unifor said in a statement, adding the union would discuss the matter in upcoming contract negotiations with Stellantis.

Asked to comment, Stellantis said it was preparing to enter the collective bargaining process and had nothing to announce at this time.

"Our focus remains on finding a sustainable manufacturing solution for Brampton Assembly," the company said in a statement.

The Canadian government has pushed Stellantis to restore production at the Brampton plant, which employed 2,200 workers before closing for retooling.

A spokesperson for Canada's Industry Minister Melanie Joly said the government has been working to protect workers and keep the Brampton Stellantis plant operating. The government is actively engaging with the company, Unifor and the province of Ontario, the statement said. 

The U.S. and Canada are working to agree on a new trade deal before a new U.S. tariff deadline on Wednesday. 

Stellantis was previously reported to be discussing options to build electric vehicles in Canada with its Chinese partner, Zhejiang Leapmotor Technology. Unifor has expressed serious concerns about Stellantis bringing a Chinese partner to make electric vehicles at the shuttered Brampton plant. 

(Reporting by Kalea Hall in Detroit and Wa Lone and Divya Rajagopal in Toronto; Editing by Chizu Nomiyama, Nia Williams and Sanjeev Miglani)