Stellantis is strongly considering closing an assembly plant in Brampton, Ont., according to a statement from Unifor president Lana Payne on Friday.
This comes after Stellantis, in October 2025, stressed that it was still committed to Canadian production and supporting local workers after it announced it would be moving production of the Jeep Compass from the Brampton Assembly Plant to another facility in Illinois.
“Stellantis notified us that it would move the future Jeep Compass production slated for Brampton to the United States, idling the plant indefinitely. Throughout this entire time, though, it’s important to note, Stellantis has reiterated to us its commitment to Brampton and our members,” Payne said, speaking in Toronto.
“But on Wednesday of this week, I have received information from Stellantis that it is now seriously considering the closure and sale of the Brampton Assembly Plant.”
In a statement sent to Global News Friday, Stellantis said it is about to enter negotiations with the union.
“We are preparing to enter the collective bargaining process and have nothing to announce at this time. Our focus remains on finding a sustainable manufacturing solution for Brampton Assembly,” said a spokesperson from Stellantis.
The announcement from Payne comes on the heels of critical trade negotiations this week between Canada and the U.S. in Washington, and ahead of new 50 per cent tariffs set to be enacted on Aug. 19.
Those new tariffs include new measures aimed at the Canadian auto sector.
“This is not an industry that should be subjected to tariffs from the United States. Our trade in auto is completely balanced with the U.S.,” Payne said. “Canada is not the problem”
“If we’re in a bilateral discussion now with the U.S., then the solution should be: no tariffs on the auto industry.”
Stellantis has faced intense scrutiny from the federal government since it announced plans in the fall to move some production out of Canada and into the U.S.
In November, Industry Minister Mélanie Joly launched a formal dispute resolution process claiming the company breached a contract that gave it access to federal funding, and was followed by a default notice filed month later.
“These actions are not symbolic. They are the direct consequence of a violation of clear commitments…. When a commitment to the Canadian government is not respected on behalf of Canadian workers, there will be consequences,” Joly said in French in November.
In referring to a breach of contract at the time, Joly specifically mentioned the 2022 agreement Stellantis signed to access $529 million from the federal Strategic Innovation Fund to retool its plants in Brampton and Windsor, Ont.
The contract was contingent on keeping production at those plants, she said.
The minister added recent contracts between Ottawa and Stellantis — including the nearly $15-billion investment in a new battery plant in Windsor — are “linked” in terms of tying the funding to maintaining Canadian jobs.
“There are job guarantees in all the different contracts,” she said.
– with files from Global News’ Sean Boynton
© 2026 Global News, a division of Corus Entertainment Inc.
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