Automaker Stellantis says it has signed a memorandum of understanding with Canadian armoured ⁠vehicle maker Roshel on a potential sale of its idled Brampton, Ont., assembly plant.

Meanwhile, the union representing Canadian workers at Stellantis said it has paused contract talks, citing an impasse over the future of the Brampton plant.

Trevor Longley, chairman, president and CEO of Stellantis Canada, said the company considered multiple options for the facility, which has been idled since 2023.

“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,” Longley said in an emailed statement.

Unifor is now “actively considering next steps” and said it will provide further details in the days ahead.

The current collective agreement between the automaker and union is set to expire Sept. 20 at 11:59 p.m.

The talks began Sept. 1 in Toronto after Unifor ratified new collective agreements with Ford Motor Co. and General Motors in Canada earlier in the summer as part of its pattern bargaining process with each of the Detroit Three.

Potential sale hindering bargaining process : union

While the union set a Sept. 11 deadline to reach a new deal with Stellantis, it said Friday that talks had broken down after 10 days.

“The persistence of the company’s proposal to close and sell the Brampton plant has hindered the bargaining process,” said Unifor spokesperson Kathleen O’Keefe in a statement.

“The proposed facility closure and sale threaten the wages, pensions and other benefits of Unifor members. It also deals a devastating blow to Canada’s industrial sector, especially in the province of Ontario and the community of Brampton.”

She added there is “no economic substitute for automotive assembly in Canada, including the extensive supply chain, regional economic activity, and high-quality, union jobs connected to it.”

More than 2,000 workers were laid off from the Brampton plant when it halted operations in 2023.

No plans confirmed yet for Windsor assembly plant

Last month, the union said it received notice that Stellantis was considering the closure and sale of the plant. The facility had been slated to be retooled for Jeep production, a process that began early in 2024, before the company paused the plan in early 2025.

It later announced it was moving production of the Jeep Compass to the U.S., in what the union called a violation of its current collective agreement, and leaving the plant idled indefinitely.

In addition to uncertainty related to jobs in Brampton, Unifor said the company has yet to confirm forecasted plans for its Windsor assembly plant and Etobicoke casting plant.

“Unifor has been consistent in its position that there will be no tentative settlement without a suitable resolution for Local 1285 members at Brampton,” O’Keefe said.

“The union has reiterated this position to both the company and government officials.”

Longley said Stellantis would not comment further “out of respect for the collective bargaining process with Unifor.”