Prime Minister Mark Carney has described the sale of Stellantis’s idled Brampton assembly plant to armoured vehicle maker Roshel as a “partial solution” for the workers laid off from the factory, days after calling the deal unacceptable and a betrayal of employees.

Stellantis announced on Monday that it had signed an agreement to sell the Brampton, Ontario plant and its associated equipment to the Canadian defence contractor for an undisclosed sum. The deal is expected to close by the end of the year, subject to government and regulatory approvals.

More than 2,000 workers have been laid off from the plant since it was idled in 2023, and the sale has become one of the most politically charged industrial disputes in Canada this year.

Carney: a global solution is owed

Carney initially said the sale “violates the obligations that Stellantis has under several agreements” and called it unacceptable. Speaking to reporters during a visit to Ireland on Thursday, he struck a more measured tone, while insisting the company still owed workers more.

“Being informed or being aware of some aspects is not the same as Stellantis providing a global solution for those workers at the plant, which is their obligation,” Carney said.

He described the agreement with Roshel as a partial solution, a marked shift from his language earlier in the week, when he called the sale a betrayal of laid-off workers and Canadians as a whole.

Ottawa believes the move breaches commitments Stellantis made in exchange for federal support, including up to $529 million committed through the Strategic Response Fund. Federal accounting records suggest more than C$220 million was forwarded in connection with retooling the company’s factories in Brampton and Windsor, Ontario.

Four-way meeting in Toronto

Industry Minister Mélanie Joly brought the parties together for a four-way meeting in Toronto on Thursday, sitting down with Stellantis, the union representing the company’s more than 9,000 workers in Canada, and representatives of the Ontario government.

Joly’s office denied reports late on Wednesday that she had been involved in the negotiations that led to the sale, saying the minister never met with Roshel. Her office said she had taken part in discussions between Stellantis and the union to find a way forward after the company decided to move production previously earmarked for Brampton to the United States.

Contract talks between Stellantis and Unifor broke down in September, after the automaker signed a memorandum of understanding with Roshel to target a sale of the facility. Last month, Stellantis workers in Canada voted overwhelmingly, with 97.3 per cent in favour, to authorise strike action.

Union calls sale a betrayal

Unifor national president Lana Payne has called the sale a “worst-case scenario” and a betrayal of union members, warning that closing and selling the plant would cut Canadian vehicle production capacity by 10 per cent.

“It’s an underhanded deal to sell the plant and walk away from its commitments to our members,” Payne said at a news conference on Monday evening.

Roshel chief executive Roman Shimonov has defended the purchase, calling it “the best thing that can happen to this plant and to this city”, and has said his Brampton-based company is willing to hire back some of the laid-off Stellantis employees.

The plant had been slated to be retooled for Jeep Compass production, a process that began early in 2024 before the automaker paused the plan in early 2025. The two companies say they are also exploring future collaboration on vehicle technologies and defence-related services.

What happens next

With the deal now signed, attention turns to whether the government will try to block it, claw back public money, or extract fresh commitments from Stellantis for the affected workers. Joly has said the sale “does not erase Stellantis’ commitment to workers”, and Carney has said the government will enforce its rights.

Brampton Mayor Patrick Brown has welcomed the chance for a local company to bring manufacturing back to the site, while saying union members deserve a fair resolution from Stellantis.

For the more than 2,000 workers who have waited years to be recalled, the sale offers at best a partial answer — and the dispute over who owes them what is far from over.

Source: The Canadian Press; Dow Jones via Morningstar