TORONTO, Aug 14 (Reuters) - Unifor has received a
notification from Stellantis ( STLA ) that the company is considering the
closure and sale of its Brampton, Ontario, plant, the president
of the Canadian autoworkers union said on Friday, blaming the
impact of U.S. trade tariffs.
Brampton was closed for retooling in 2024, which Stellantis ( STLA )
paused in 2025 before moving future production of its Jeep
Compass to a factory in Illinois after U.S. President Donald
Trump imposed tariffs on Canadian goods.
Unifor will soon negotiate a new contract with Stellantis ( STLA )
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 ( STLA ).
Asked to comment, Stellantis ( STLA ) 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 pressured Stellantis ( STLA ) to restore
production at the Brampton plant, which employed 2,200 workers
before closing for retooling. A government spokesperson did not
immediately respond to a request for comment.
The U.S. and Canada are working to agree a new trade deal
before a new U.S. tariff deadline hits on August 19.
Stellantis ( STLA ) 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 ( STLA ) bringing a Chinese partner to make
electric vehicles at the shuttered Brampton plant.