Stellantis has reportedly signed a memorandum of understanding (MoU) with a Canadian military vehicle manufacturer that could lead to the sale of an idle Stellantis car factory – the Brampton plant - near Toronto.

The reported move comes as Roshel Inc. is aiming get a big Canadian military contract to build light utility vehicles.

The Bloomberg news agency reported that Roshel has informed Canada’s government about the plan and also said it could reactivate the facility quickly if it lands the military contract.

According to the report Roshel CEO Roman Shimonov has said his company is the only serious potential buyer for the Stellantis facility. He also said the MoU is the first step in what could be a complicated process.

The sale could be complicated by a number of factors, including the status of previous state subsidies for the plant and also the position of the local Unifor labour union.

“It’s a document that clearly specifies the plan, the responsibilities, the framework and everything else,” Shimonov told Bloomberg.

The report said the plant employed as many as 3,000 workers when it was in operation but has been idle since 2023. US tariffs meant that a plan to build the Jeep Compass there was cancelled and Stellantis output plans for that model moved to the US.

Stellantis revealed last month that it was considering shutting the plant in a communication with the Unifor labour union.