General Motors (GM) has confirmed that it is ending production of its BrightDrop electric vans at the Canadian Automotive Manufacturing Inc. (CAMI) assembly plant in Ingersoll, Ontario.
Production at the plant was paused back in May, when the automotive manufacturing giant cited low demand for commercial electric vehicles. According to CBC, GM stated today that BrightDrop vehicles will not be manufactured elsewhere.
GM has stated that hourly employees will receive six months’ salary, along with possible lump sum payments and other benefits, which aligns with the collective bargaining agreement with Unifor. The company is set to collaborate with Unifor and both levels of government to assess the future of the CAMI plant, which is currently at risk.
As CBC pointed out, BrightDrop’s launch in 2021 was billed as a ‘significant step’ in General Motors’ push towards an all-electric future. However, the company added that the commercial EV sector is moving much more slowly than anticipated, which was blamed on weak demand, regulatory changes, and the loss of the U.S. tax credit for delivery EVs.
One point to note is that the Ingersoll-based CAMI plant had been operating below capacity since production began in 2022, following a C$1 billion retooling investment backed by both the federal and provincial governments.
Despite General Motors’ commitment to the Canadian Auto Industry through its auto assembly plants in Oshawa and St. Catharines and the C$600 million battery materials plant in Bécancour, Que., this is yet another massive loss.
Even the previously mentioned Oshawa plant has had some problems, with significant layoffs that forced an entire shift out of a job. This also comes a week after Stellantis relocated production of the Jeep Compass from the Brampton Assembly Plant to the Belvidere Assembly Plant in Illinois, which has caused backlash from both the federal government and Unifor.
Source: CBC
