A Canadian Plant Meant to Build Jeeps May Make Armored Vehicles Instead

The Plant Left Waiting

Since the Trump administration imposed tariffs on Canadian goods last year, Stellantis’ Brampton plant in Ontario has faced an uncertain future, leaving its workers laid off. The factory was being retooled in 2023 to produce the next-gen Jeep Compass, but the tariffs complicated the business case.

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After a long period of uncertainty over the assembly plant’s future, Stellantis may have found a path forward. According to Bloomberg, the automaker has signed a memorandum of understanding with armored-vehicle manufacturer Roshel, which plans to establish a defense-manufacturing center at the site. That also means the plant’s return as a Jeep factory is looking less likely.

What Could’ve Been

Building Jeeps in Canada would have given Stellantis a stronger and more diversified manufacturing footprint in North America, catering to Canadian and U.S. buyers. It could have better served regional demand and limited disruption if a factory, supplier network, or labor situation ran into trouble. Instead, production of the long-overdue next-gen Compass has been moved to the Belvidere Assembly Plant in Illinois, where it will be built alongside the Cherokee.

Under the MOU with Roshel, the company says it is prepared to give laid-off Unifor workers first consideration for jobs at the plant as early as 2026.

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Previously, Stellantis was reportedly in talks with Chinese partner Leapmotor to assemble vehicles from knock-down kits at the Brampton plant. Unifor pushed back on the idea, arguing that the vehicles would largely be assembled in China and completed in Canada, limiting labor requirements and creating fewer jobs. BYD was another Chinese automaker reportedly considering the plant as a site to build electric buses.

On To The Next

It is worth noting, however, that the agreement is only an MOU, meaning the potential sale has not been finalized.

Still, Stellantis may start to shift its focus elsewhere. The company has launched a new program called FaSTLAne 2030, a five-year, €60 billion (about $69 billion at current exchange rates) strategic plan aimed at improving profitability. Jeep and Ram are among the company’s priority brands for future investment. The Wrangler maker is currently Stellantis’ leading brand in North American sales, but the new strategic plan would put it behind Ram, with a North American sales target of 740,000 units in 2030 versus the truck brand’s target of 825,000 units.

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This story was originally published September 13, 2026 at 3:03 PM.

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