In a move that underscores the volatility of the electric vehicle (EV) transition, General Motors (GM) has announced a temporary production halt at its CAMI Assembly plant in Ontario, Canada. The plant, which manufactures BrightDrop electric commercial vans, is facing a slowdown in demand, leading to layoffs and a strategic production pause.
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📉 Sluggish EV Sales Trigger Temporary Shutdown
GM confirmed that it is halting production of its BrightDrop electric vans due to slower-than-anticipated market demand. The company emphasized that this decision is not related to recently introduced auto tariffs, distancing the move from geopolitical tensions.
According to Unifor, the union representing workers at the plant, approximately 1,200 employees will be temporarily laid off starting April 14. GM plans to pause production until October 2025, during which time the plant will undergo retooling in preparation for the 2026 model year BrightDrop vans.
🔧 Retooling Plans & Future Production Outlook
During the production hiatus, GM says it will focus on upgrading the CAMI facility to accommodate the next generation of electric vans. When operations resume in October 2025, the plant will operate on a single shift, resulting in the indefinite layoff of around 500 workers, according to the union.
In a statement, GM reassured stakeholders that it remains committed to both the BrightDrop brand and the future of its Canadian operations:
“This adjustment is directly related to responding to market demand and re-balancing inventory. Production of BrightDrop and EV battery assembly will remain at CAMI.”
đź’¬ Union & Political Leaders Respond
Unifor National President Lana Payne called the move a “crushing blow” to families in Ingersoll and surrounding communities:
“General Motors must do everything in its power to mitigate job loss during this downturn, and all levels of government must step up to support Canadian auto workers and Canadian-made products.”
Canadian Prime Minister Mark Carney echoed that sentiment on social media, calling the layoffs “deeply painful news” and vowing support for Canada’s auto workers:
“My government is fighting to defend our auto sector, protect our workers and build our supply chains in Canada.”
Opposition leader Pierre Poilievre also weighed in, promising action to support the auto workforce:
“We will keep them working, so they can keep their jobs as we fight through this mess… A Conservative Government will push hard to put an end to these tariffs and get a quick but fair deal that protects our sovereignty and our economy.”
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đź“Š BrightDrop Sales: Progress, But Still Slow
While sales of the BrightDrop vans are up slightly—274 units sold in Q1 2025, compared to 256 in Q1 2024—the increase hasn’t been enough to maintain current production levels. The sluggish demand is a stark reminder of the challenges automakers face in ramping up EV adoption, particularly in the commercial sector.