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GM Idles Canadian EV Plant, Cites Market Demand Shift

Starting April 14, the CAMI plant — responsible for producing BrightDrop electric delivery vans — will halt operations for several months.

Sara Jones by Sara Jones
April 13, 2025
in Business, Investing, Markets
0
GM Idles Canadian EV Plant, Cites Market Demand Shift

PHOTO CREDITS : MSN

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In a major shakeup to its electric vehicle strategy, General Motors is cutting jobs and pausing production at its CAMI Assembly Plant in Ingersoll, Ontario. The automaker is citing “market demand” as the reason for the move, which will impact hundreds of workers and delay future EV plans in the region.

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Temporary Shutdown, Permanent Impact

Starting April 14, the CAMI plant — responsible for producing BrightDrop electric delivery vans — will halt operations for several months. The shutdown is expected to last until October 2025, with limited production potentially resuming in May. Even when the assembly line restarts, it will run at reduced capacity, operating with just one shift instead of the usual two. That decision will leave approximately 500 workers laid off indefinitely.

GM cutting jobs, idling Canadian electric van plant due to 'market demand'

The company says the changes are part of a broader effort to “match production with customer demand and inventory levels.” Translation: there are more electric vans sitting in lots than there are buyers right now.

St. Catharines Project Pushed to 2027

In another blow to the Canadian EV landscape, GM is delaying the start of EV motor production at its St. Catharines Propulsion Plant. Originally scheduled for a mid-2025 launch, the project has now been pushed to early 2027. The delay affects around 1,000 workers at the facility, with nearly half facing layoffs during the pause.

While disappointing, GM says the decision was necessary to align its EV manufacturing with a slower-than-expected growth in market demand.

Union Frustration Grows

Union leaders have expressed frustration and concern over the job cuts, emphasizing the need for more coordinated efforts between GM, workers, and the government to protect jobs and ensure a smooth transition into the EV era. They’re calling for additional support for affected workers and communities — especially as the shift toward electric vehicles continues to reshape the automotive industry.

What’s Next?

Despite the current cutbacks, GM says it’s still committed to its electric future in Canada. However, these delays and layoffs suggest a more cautious, calculated approach to scaling EV production than originally planned.

GM to Idle Plant in Second Blow to Canada Auto Sector Since Tariffs Started  - Bloomberg

For workers, it’s a frustrating setback. For the industry, it’s a sobering reminder that while EVs may be the future, getting there won’t be as fast or smooth as once expected.

Tags: CAMICites Market Demand Shiftelectric vehicleElectric Vehicle newsElectric Vehicle updatesGM Idles Canadian EV PlantIn a major shakeup to its electric vehicle strategyOntariotechstory
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Sara Jones

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