General Motors (GM) has announced a temporary halt and reduction in production at its CAMI Assembly Plant in Ingersoll, Ontario, which builds the BrightDrop electric delivery van. The move is expected to lead to significant layoffs, with the company’s union, Unifor, reporting that hundreds of workers will be affected.
Starting April 14, GM will initiate temporary layoffs, with workers expected to return in May for limited production. However, the company plans to halt production entirely following that period, leaving the plant idle until October 2025. This downtime will be used for retooling the facility in preparation for the 2026 model year of commercial electric vehicles.
When production resumes in October, it will operate on a single shift, a significant reduction from the plant’s previous output. This shift in operations is anticipated to result in the indefinite layoff of nearly 500 workers. Unifor National President Lana Payne expressed the severity of the situation, calling it a “crushing blow” to hundreds of families in the Ingersoll area who depend on the plant for their livelihoods.
“This is a devastating blow to working families,” Payne said. “General Motors needs to do everything it can to mitigate job loss during this downturn, and all levels of government must step up to support Canadian auto workers and Canadian-made products.”
A spokesperson for GM Canada, Jennifer Wright, stated that the company is adjusting its operations to balance inventory levels and align production schedules with current demand. However, GM remains committed to keeping BrightDrop production at the CAMI plant.
GM attributed the production slowdown to lower market demand for the BrightDrop vans, though the company did not mention tariffs as a contributing factor. A report from Detroit Free Press in March revealed that GM has struggled to sell its BrightDrop vans in the U.S., partly due to the higher cost compared to Ford’s electric delivery van, which is priced more than $20,000 lower before incentives.
Lana Payne also pointed to the broader economic climate, particularly U.S. President Donald Trump’s tariff policies, which she claims are damaging the North American auto industry. “The U.S. is creating industry turmoil,” Payne said, arguing that tariffs and the rejection of electric vehicle technology are creating openings for China and other foreign automakers to dominate the global EV market.
In response, Trump imposed a 25% tariff on imported vehicles, with temporary reprieves for certain parts under the Canada-U.S.-Mexico free trade agreement. In retaliation, Prime Minister Mark Carney imposed tariffs on U.S. automobiles entering Canada.
Payne warned that if both Canada and the U.S. fail to prioritize electric vehicle production, they risk losing their place in the global market. “The world is rapidly moving towards electrification. If Canada and the U.S. hit pause now, we may never catch up,” she said. “We risk surrendering our future unless we act decisively to support our own industry.”
As GM adjusts its strategy in the face of changing market conditions, the situation at the CAMI plant serves as a stark reminder of the challenges faced by the North American auto industry in transitioning to electric vehicles while navigating political and economic uncertainties.
