By Kalea Hall and Wa Lone
TORONTO, Aug 14 (Reuters) – Unifor has received a notification from Stellantis 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 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 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.
Asked to comment, Stellantis 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 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 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 bringing a Chinese partner to make electric vehicles at the shuttered Brampton plant.
(Reporting by Kalea Hall in Detroit and Wa Lone in Toronto; Editing by Chizu Nomiyama and Nia Williams)
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