GM Terminates Commercial Electric Van Production in Ontario
The Canadian auto industry is taking a second major blow in less than two weeks. After losing the next-generation Jeep Compass in Brampton, Ontario now has to deal with General Motors ending production of Chevrolet BrightDrop electric vans at the CAMI plant in Ingersoll.
The news was confirmed today by the automaker, which has invested more than a billion dollars in the project since 2021. The difference in this case is that the vehicle is being discontinued, not moved to a U.S. factory or elsewhere.
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“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. “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.”
With demand for commercial electric delivery vans growing much slower than expected, the plant was operating below capacity. In fact, production has been suspended since May. The elimination of tax credits for EV customers in the U.S. has thrown another wrench into the plans.
GM Canada said it wants to work with Unifor, which has yet to publicly react to the news, to follow the provisions of the collective agreement. Hourly employees will receive six months of salary and the potential for lump sum payments and other benefits.
“Our Canadian operations continue to be a critical part of GM and our North America business,” Aquilina assured. “For more than 100 years, GM has been designing, engineering and building vehicles in Canada and we intend to keep doing so.”
On October 16, the second phase of the $600 million Ultium CAM plant in Bécancour, Quebec was put on hold by GM-Posco, jeopardizing the $325 million plant of Brazilian company Vale and once again disrupting the development and production of EV batteries in that province.