General Motors Canada has announced that it will temporarily suspend production and lay off workers at its CAMI Assembly Plant in Ingersoll, Ontario, due to lower-than-expected demand for its electric delivery vehicle, the BrightDrop. The decision marks a significant setback for GM’s EV ambitions in Canada and raises broader concerns about the stability of the North American auto industry amid trade tensions and shifting market conditions.
In a statement, GM Canada spokeswoman Jennifer Wright said, “CAMI is adjusting its production schedule to match inventory levels and current demand.” She emphasized that the company remains committed to both the BrightDrop electric vehicle and the future of the CAMI plant. “We will provide additional support for the remaining workers as the restructuring process proceeds,” she added.
The CAMI plant is currently GM’s only facility dedicated to producing electric delivery vans. However, it will be closed starting April 14, with limited production set to resume in May before shutting down again until October. Going forward, the plant will operate with just one shift, and the union representing workers expects approximately 500 employees will face indefinite layoffs.
Lana Payne, national president of Unifor—the union representing about 1,200 workers at the facility—called the news “a devastating blow to hundreds of families in the Ingersoll area.” She urged GM to minimize job losses and called on the Canadian government to support the struggling auto industry and its workforce during this period of uncertainty.
The production pause comes in the wake of former U.S. President Donald Trump’s announcement of a 25% tariff on Canadian and Mexican vehicles, effective April 3. The tariffs have sent shockwaves through the North American auto industry, threatening the tightly interconnected supply chain between the three countries. While GM has stated that the decision to idle the CAMI plant is not directly tied to the tariffs, industry experts believe the new trade barriers will have ripple effects across the sector.
In a related move, Stellantis also announced temporary closures at its Windsor, Ontario, plant, as well as some facilities in Mexico and the United States. The automaker said the two-week pause is intended to assess the potential impacts of the recently introduced tariffs.
With electric vehicle sales growth slowing and international trade tensions rising, the auto industry faces a period of volatility. Analysts warn that ongoing disruptions could lead to further production delays, plant closures, and significant job losses unless market demand rebounds and trade conditions stabilize.