A $6 billion military contract could determine the future of Stellantis’ Brampton Assembly Plant. Canadian armored vehicle manufacturer Roshel needs additional production space, and the Ontario factory reportedly ranks among the facilities that could meet its requirements, although neither company has announced an agreement.
A $6 billion defense deal could decide the future of Stellantis’ Brampton factory
The urgency comes from a Canadian government tender covering between 1,600 and 2,100 light utility vehicles, along with 400 to 500 trailers. Only domestic companies can participate, and Roshel reportedly remains one of the two bidders still competing for the contract. Winning would transform the scale of the company’s operations, requiring hundreds of new hires by the end of the year and potentially thousands more afterward. Roshel currently occupies around 400,000 square feet across manufacturing, research, and development facilities, but future programs could require a site approaching two million square feet.
Founded 10 years ago, Roshel has expanded rapidly by supplying armored vehicles to Ukraine and several NATO countries, including the United States, Germany, France, and the United Kingdom. CEO Roman Shimonov believes the defense industry could help offset Canada’s declining automotive production, provided companies can quickly gain access to properly equipped factories.
Brampton appears to fit at least part of that profile. Stellantis has kept the plant idle since 2023, leaving most of its roughly 3,000 workers without an active production assignment. The company had originally planned to build the Jeep Compass there as part of the factory’s relaunch, but Stellantis later assigned production to Illinois, leaving the Canadian site without a confirmed vehicle.
Stellantis continues to say it wants to find a sustainable future for Brampton, but local officials and labor representatives are demanding faster action. Unifor has asked the automaker to provide a clear plan, while Brampton Mayor Patrick Brown has called the possibility of waiting until 2031 for a reopening unacceptable.
Shimonov has indirectly confirmed that Roshel has started looking for new production space, which keeps Brampton in the conversation. However, the company’s interest will likely become more concrete only if it wins the government contract and gains the volume needed to justify such a major expansion.