Stellantis May Close Ontario Plant
Automaker considers shutting down Brampton assembly plant despite previous commitment to Canadian production, as new 50% tariffs loom
Stellantis is considering closing its assembly plant in Brampton, Ontario, according to Unifor president Lana Payne. This comes as a surprise, given the company's previous commitment to Canadian production and supporting local workers.
The announcement was made on the heels of Stellantis' decision to move production of the Jeep Compass from the Brampton Assembly Plant to another facility in Illinois, which was announced in October 2025. At the time, the company reassured Unifor that it remained committed to Brampton and its workers.
However, on Wednesday, Payne received information from Stellantis that it is now seriously considering the closure and sale of the Brampton Assembly Plant. This decision is likely linked to the ongoing trade negotiations between Canada and the US, which are currently taking place in Washington.
New 50% tariffs on the Canadian auto sector are set to be enacted on August 19, which could have a significant impact on the industry. Unifor president Lana Payne has spoken out against these tariffs, arguing that the auto trade between Canada and the US is balanced and that Canada is not the problem.
## Why it matters The potential closure of the Brampton assembly plant has significant implications for the local workers and the Canadian auto industry as a whole. The plant's closure would not only result in job losses but also undermine the country's manufacturing sector. The tariffs on the auto sector, which are set to come into effect soon, could further exacerbate the situation.
The trade negotiations between Canada and the US are critical in determining the fate of the Brampton assembly plant. A resolution to the trade dispute could potentially save the plant, while the imposition of tariffs could seal its fate. As the situation unfolds, the future of the plant and its workers remains uncertain.
## What happens next The outcome of the trade negotiations and the decision on the tariffs will be closely watched in the coming days. Unifor and other stakeholders will likely continue to push for a resolution that protects the interests of Canadian workers and the auto industry. As the deadline for the tariffs approaches, the pressure is on to find a solution that avoids devastating the Canadian auto sector.
