Ontario auto sector struck again as GM ceases van production

In yet another blow to Canada’s auto industry, General Motors announced on Tuesday that it will cease production on its electric van, resulting in 1,200 lost jobs in Ontario.

Source: GM Canada

In yet another blow to Canada’s auto industry, General Motors announced on Tuesday that it will cease production on its electric van, resulting in 1,200 lost jobs in Ontario.

The auto manufacturer cited low demand for its BrightDrop delivery van, as well as the end of U.S. tax credits for electric vehicles.

“The decision to end production of the BrightDrop electric delivery van is driven by market demand and in no way reflects the commitment and skill of our workforce at CAMI,” said Kristian Aquilina, president and managing director of GM Canada, in a statement.

“This continues to be an uncertain time for our workforce at CAMI, and we are committed to working closely with our employees, Unifor and the Canadian and Ontario governments as we evaluate next steps for the future of CAMI.”

GM said that it “appreciates that support from Canadian and Ontario Governments” and intends to engage with its partners to “have meaningful discussions about opportunities for the plant. “

Additionally, the company pledged to work with Unifor, the union which represents the autoworkers, to “follow the provisions of the collective agreement.”

Meanwhile, GM’s hourly employees will receive six months of salary and the potential for lump sum payments and other benefits.

The news comes on the heels of EV manufacturer Stellantis announcing that it would move production of a new Jeep model from Brampton, Ont., to a plant in Illinois.

Stellantis plans to invest over $18 billion to expand its operations in the U.S. over the next four years. The decision was made despite Ottawa and the Ontario government giving the company $15 billion in taxpayer subsidies.

Unifor has laid the blame on U.S. President Donald Trump and his administration’s tariffs on Canada’s auto sector, but the factory was temporarily shut down in May due to slow sales. It was anticipated to restart production in November.

The EV vans had been manufactured in Ingersoll, Ont., since 2022, after GM received 519 million from the Canadian and Ontario governments to retool the site.

The company had also previously announced it would be ending a shift at its Oshawa pickup facility earlier this year, resulting in roughly 2,000 local jobs lost.

GM’s statement did not provide any details regarding the future of its Ingersoll factory, but Industry Minister Melanie Joly has since given the company 15 days to provide an update on its “next steps” for the plant’s employees.

“Canadian workers deserve clarity and action, not uncertainty,” said Joly on Thursday.

Additionally, Joly confirmed that the Liberals are forming a new “response group,” which will include members of the Ontario government.

Conservative Leader Pierre Poilievre questioned Joly as to how Prime Minister Mark Carney will be able to regain the trust of Ingersoll employees during an exchange in the House of Commons on Tuesday.

“How does the prime minister look in the eyes of the very workers that he sold out and betrayed?” he asked.

Joly responded by saying that Carney “will look at the auto workers in the eyes and he will say, we will fight for your job. That’s exactly what we’re doing every single day.”

However, Poilievre accused Joly and the Liberals of continuing to hold meetings with industry, union and government leaders for months without yielding any promising results.

“Canadians are tired of talk,” said Poilievre. “They want their jobs.”