Stellantis has signed an asset purchase agreement to sell its Brampton assembly plant in Ontario, Canada, and related equipment to Canadian defence technology company Roshel.

The companies have also agreed a cooperation framework to examine potential global collaboration in vehicle technologies and defence industry services.

Stellantis said the transaction supports its FaSTLAne 2030 strategy, which targets around 80% manufacturing capacity utilisation across North America by 2030.

It said the agreement provides a route for the Brampton facility to return to industrial production and support Roshel’s expansion as a Canadian defence manufacturer.

Stellantis said it remains ready to engage with Canadian trade union Unifor on a settlement for union-represented employees.

The Brampton Assembly Plant has 2.95 million square feet of space.

Built in 1986, the site was acquired by Chrysler Corporation – now operating as Stellantis North America – through the purchase of American Motors Corporation in August 1987.

The plant most recently manufactured the Chrysler 300, Dodge Charger, and Dodge Challenger. Production ended in December 2023.

Stellantis said in 2023 that it would build the next-generation Jeep Compass at Brampton.

Retooling started in 2024, but the company paused the work in February 2025 while reassessing its North American product strategy.

Outside the Brampton plant, Stellantis said it continues to employ more than 10,000 people in Canada, including at the Windsor Assembly Plant, Etobicoke Casting Plant, Automotive Research and Development Centre in Windsor, and CpK operations.

The deal, whose transaction value has not been revealed, is due to close by the end of 2026, subject to closing conditions including government and regulatory approvals.

Stellantis CEO Antonio Filosa said: “With this announcement, we are driving forward our broader strategic goals, opening new opportunities for Stellantis in the defence industry and creating a path to return the Brampton facility to productive industrial use.” 

The agreement follows Stellantis’ publication of its third quarter results last month.

The company maintained its annual guidance despite reporting another sizeable quarterly loss and substantial cash outflow.

It said third quarter net revenues increased 1% versus Q3 2025 to €37.6bn ($42.24bn).