Canada Union Says Stellantis Eyeing Sale of Toronto-Area Plant — Update

By Paul Vieira

OTTAWA--The union representing Canada's auto workers says Stellantis has disclosed its intention to sell a Toronto-area factory that's been the focus of a dispute between Ottawa and the auto maker.

Lana Payne, president of Unifor, said Stellantis informed the union this week it is considering closing the factory and selling the plant. The facility in Brampton, Ontario has been closed since 2024 for retooling, to prepare for the production of a next-generation Jeep Compass starting in early 2026. Governments in Canada contributed hundreds of millions of dollars to Stellantis to help modernize its factories in Brampton and Windsor, Ontario.

Stellantis last year said it would shift manufacturing to Illinois, as pressure mounted from President Trump for car companies to shift operations to the U.S.

"What the company has indicated is its intent to open discussions with another firm" about a sale, Payne said. "To say that we are disappointed would be an understatement. This is a gut punch to our union and to our members."

A spokeswoman for Stellantis said she couldn't comment on Payne's remarks, citing the pending start of negotiations on a new collective agreement with Unifor. "Our focus remains on finding a sustainable manufacturing solution for Brampton," the spokeswoman said, without elaborating.

Payne said she's gone public with Stellantis's plans because Unifor's members "need and deserve to know what we are up against right now." At its peak, the Brampton factory employed up to 3,000 workers.

Canadian officials have threatened to sue Stellantis for failing to meet its pledge to assemble the Jeep Compass in Brampton. Canadian officials and Stellantis have been in talks for nearly a year, as Ottawa attempts to recoup the cash the government provided for Brampton retooling.

A spokeswoman for Canadian Industry Minister Melanie Joly did not immediately respond to a request for comment.

Auto manufacturing in Canada has taken a hit following Trump's decision to slap a 25% tariff on foreign-made automobiles. Canadian officials are in Washington in talks to ease those auto duties and avert administration plans to impose a 50% tariffs on certain goods starting next week.

The White House has said the 50% tariff is required due to alleged mistreatment by Canada of U.S. auto imports. "We shouldn't be offering any concessions to the U.S. right now" in these trade talks, Payne said.

Write to Paul Vieira at paul.vieira@wsj.com

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August 14, 2026 15:48 ET (19:48 GMT)