Ingersoll – Arab Canada News

General Motors Canada announced a temporary halt to the production of BrightDrop electric vehicles at its plant in Ingersoll, Ontario, starting April 14, due to weak demand and high inventory levels, which will lead to a temporary layoff of about 1,200 employees.

In an official statement, the company confirmed that production would partially resume in May, before stopping again until October, which will also result in a permanent layoff of about 500 workers when returning to a single-shift work system.

General Motors explained that the decision to halt is not related to the recent developments in the tariff file imposed by the United States on several imports, noting that the step comes as part of a strategic assessment of the electric vehicle market, which is experiencing a slowdown in growth compared to previous expectations.

The company added that the downtime will also be used to retool the plant in preparation for producing the new model of BrightDrop vehicles for 2026, including optimizing production lines and updating assembly equipment.

Union Concerns and Calls for Intervention

For its part, the Unifor union, which represents workers at the plant, expressed deep concern over the decision, indicating that it came “without sufficient warning,” and called on the company’s management to coordinate with both federal and local governments to find alternative solutions that preserve as many jobs as possible.

Jim Melville, a union representative, said in a press statement: “We understand the challenges associated with the slowdown in the electric vehicle market, but workers cannot bear the burden of this change entirely,” adding that the union will seek to open a dialogue with the company regarding support and compensation prospects.

Background: Tough Bets on the Future of Electric Vehicles

The CAMI plant in Ingersoll opened in 2022 as the first site in Canada dedicated entirely to producing commercial electric vehicles of the BrightDrop model, as part of an ambitious plan by General Motors to transition to clean energy. Annual production was anticipated to reach 50,000 units by 2025, but the global slowdown in the demand for electric vehicles, along with rising costs and declining government incentives, forced the company to rethink its expansion plans.

This setback comes at a sensitive time as the electric vehicle market is experiencing significant fluctuations due to intense competition, raw material price volatility, and consumers returning to traditional vehicles due to the price gap and challenges related to battery charging infrastructure.

Government Anticipation

Although the Ontario government has not yet issued an official comment, informed sources indicated that consultations with General Motors are expected in the coming days to discuss potential incentive support to save jobs, especially since the automotive sector is considered one of the main pillars of the local economy in the province.