Stellantis Signs MOU to Sell Idled Ontario Plant to Armored Vehicle Maker Roshel

Stellantis NV has entered into a memorandum of understanding (MOU) with Canadian armored vehicle manufacturer Roshel Inc. to pursue the sale of its idle assembly plant near Toronto. The agreement outlines the initial steps for Roshel to potentially acquire the facility, a move contingent on the defense company securing a major government contract.

A Deal Driven by a Defense Contract

Roshel's interest in the Brampton, Ontario, facility is tied to its bid for a Canadian military contract valued at up to C$4.9 billion ($3.5 billion) to produce light utility vehicles. According to the source, Roshel has informed the Canadian government that it could rapidly reactivate the plant if it wins the contract.

Roman Shimonov, Roshel's chief executive officer, described the memorandum as the "first step in a complicated process" and stated his company is the only serious potential buyer. "It's a document that clearly specifies the plan, the responsibilities, the framework and everything else," Shimonov said.

Ad

Path to Restoring Operations

A Stellantis spokesperson, LouAnn Gosselin, confirmed the signing of the MOU. She stated that the automaker believes Roshel represents a "strong path to restoring operations at Brampton Assembly" and preserving the site's role in Canada's manufacturing sector.

The Brampton plant, which once employed approximately 3,000 unionized workers, ceased production in late 2023. A previous plan to retool the factory to build the Jeep Compass SUV was canceled last year following the announcement of potential U.S. tariffs on foreign-made vehicles. Stellantis is currently in negotiations with Unifor, the union representing the plant's workers.