General Motors has officially announced the discontinuation of production for its BrightDrop electric delivery vans at the CAMI Assembly plant in Ingersoll. This decision has cast uncertainty over the future of the southwestern Ontario facility. Production at the plant was halted in May due to a slowdown in demand within the commercial electric vehicle market. General Motors specified that the BrightDrop vehicles will not be manufactured elsewhere, marking the end of a production line that was expected to play a pivotal role in Ontario’s electric vehicle aspirations.
Kristian Aquilina, GM Canada’s president and managing director, explained that the specialized electric delivery vans failed to generate the anticipated demand from commercial customers, leading to the production halt. Aquilina emphasized that this decision was solely based on market demand and not influenced by tariffs or trade issues.
The news of the production discontinuation came as a significant blow to the approximately 1,200 workers at the plant, many of whom have been on temporary layoff since earlier this year. Mike Van Boekel, president of Unifor Local 88, expressed disappointment and frustration over the decision, highlighting the dedication of the workforce and their commitment to the company.
Initially launched in 2021 as part of GM’s transition towards an all-electric future, BrightDrop was expected to be a milestone for the company. However, the commercial EV sector’s growth did not meet expectations, leading to the production stoppage.
The Ingersoll plant had been operating below capacity since its inception in late 2022, following a significant retooling investment of $1 billion supported by federal and provincial governments.
The future of CAMI workers remains uncertain, with hourly employees set to receive six months’ salary and potential lump-sum payments in accordance with the collective agreement with Unifor. Aquilina assured that GM is exploring alternative opportunities for the plant and remains committed to finding solutions for the facility.
General Motors reiterated its commitment to Canada, highlighting ongoing operations in Oshawa and St. Catharines, as well as the construction of a new $600 million battery-materials facility in Bécancour, Quebec.
The production decision follows GM’s strong financial performance and record-high stock price. The $2 billion retooling of the CAMI plant in 2021, with $500 million contributed by the Ontario and federal governments, is under review given the current market conditions.
Ontario Finance Minister Peter Bethlenfalvy emphasized the province’s dedication to safeguarding jobs and maintaining assembly operations in Ontario, underscoring the importance of the auto and manufacturing sectors to the economy.
GM’s announcement coincides with Stellantis’ decision to invest heavily in expanding manufacturing capacity in the U.S., impacting Canadian jobs. Stellantis will shift production of the Jeep Compass from Ontario to Illinois, raising concerns about job losses in Canada.
The federal and Ontario governments are expected to face pressure to support the CAMI Assembly plant and secure its future mandate, similar to their backing of previous EV and battery projects in the region.