GM has temporarily halted production of its BrightDrop electric delivery van and plans to cut workers at its Ontario plant when it resumes scaled-back output, labor union Unifor said Friday.
The Detroit automaker confirmed it is making operational and employment adjustments to “balance inventory and align production schedules with current demand.” The company said it was committed to the future of BrightDrop and its CAMI plant in Ingersoll, Ontario, where production of the van and EV battery assembly would remain.
The decision from GM adds to worries in Canada about the wider ramifications from President Trump’s trade policy on its manufacturing sector and economy. The Trump administration last week imposed a 25% tariff on foreign-made cars, in a bid to persuade auto makers to move operations from countries such as Canada to the U.S.
Prime Minister Mark Carney said earlier in the day the tariff-fueled market turmoil of the past week has led to a “marked tightening” in financial conditions, and is weighing on Canada’s labor market. The economy shed about 33,000 jobs in March, the worst one-month performance in three years.
Last week, Stellantis NV said it would temporarily halt production at its minivan plant in Windsor, Ontario, for two weeks, a day after the White House’s tariff aimed at imported vehicles went into effect.
GM’s decision was due to weak demand for the EV van, and not related to the U.S. administration’s trade policy, according to a person briefed on the matter. Recent data from GM indicated the company sold 274 BrightDrop vans in the first quarter, a 7% increase from the same period a year-ago. Overall, sales of GM vehicles rose 16.7% in the first quarter.
Lana Payne, the president of Unifor, Canada’s largest private-sector union, said tariffs imposed on the country and Trump’s policies regarding EVs played a role in GM’s decision. The administration’s policies are “disrupting investment and freezing future order projections,” Payne said.
Unifor said GM will initiate temporary layoffs starting April 14, and workers will return in May for limited production. It said the company informed it production would then be halted until October, during which time GM plans retooling work to prepare for the 2026 model year of commercial EVs.
When production does resume, the plant will operate a single shift for the foreseeable future, which is expected to result in the indefinite layoff of almost 500 workers, Unifor said. The union represents more than 1,200 workers at CAMI, where BrightDrop production began in early 2023
Payne called on the company to do everything in its power to mitigate job losses, and for all levels of government to step up and support Canadian auto workers and Canadian-made products.
Source: https://www.wsj.com/business/autos/general-motors-to-suspend-production-lay-off-500-at-electric-vehicle-plant-in-ontario-066db9ba