General Motors has confirmed it is ending production of its BrightDrop electric delivery vans at the CAMI Assembly plant in Ingersoll, leaving the future of the southwestern Ontario facility uncertain.
Production at the plant was paused in May when GM cited slowing demand in the commercial EV market. The company said that as part of today’s decision, BrightDrop vehicles won’t be made elsewhere, marking an end to the line that was pegged to be a cornerstone of Ontario’s electric-vehicle ambitions.
“These Bright Drop vans are a specialized electric delivery van for commercial customers and, quite simply, we just have not seen demand for these vehicles climb to the levels that we initially anticipated,” said Kristian Aquilina, GM Canada’s president and managing director, who was in Ingersoll for the announcement. “This has nothing to do with tariffs or trade. It’s simply a demand and a market-driven response.”
The update from GM came as a major blow to the 1,200 workers, many of whom have been laid off since the spring.
“This news was devastating for all of us, especially for the membership of our local,” said Mike Van Boekel, president of Unifor Local 88, in a letter to its members. “We’ve shown up for every ask, every time. And now, to be met with this short-sighted decision is frustrating and disheartening.”
Hear CBC London’s full interview with Kristian Aquilina, president and managing director of GM Canada, about plans to end the BrightDrop electric van production at its CAMI plant in Ingersoll, Ont. Aquilina took questions about the decision, its implications for local workers, and what this change means for auto production in the province.
BrightDrop’s launch in 2021 was billed as a significant step in GM’s push toward an all-electric future. But the company said the commercial EV sector has developed much more slowly than expected.
“The situation has continued to evolve, whereby the growth in demand that we’re expecting still hasn’t taken place,” said Aquilina. “And in addition to that, you have regulatory conditions, and EV adoption, and our main customer in the U.S. continued to flatten or fall. So, really, as we looked ahead and assessed the future — we didn’t see it continuing.”
The Ingersoll plant had been operating below capacity since production began in late 2022, following a $1-billion retooling investment supported by the federal and provincial governments.
Uncertain future for CAMI workers
CAMI Assembly has been a significant economic driver for the Ingersoll region since opening in 1989.
Tuesday’s announcement stated that hourly employees will receive six months’ salary, along with possible lump-sum payments and other benefits, in line with the provisions of the collective agreement with Unifor.
“It’s just a layoff at this point in time,” said Aquilina. “We’re assessing other opportunities for this plant, and we’ll take the opportunity now with renewed interest and renewed energy to find options and alternatives for the CAMI facility. This is a fantastic team we have here. They do amazing work, and it’s highly valued by General Motors.”
Van Boekel said workers are looking for answers and any glimpse of their future with the company.
“We fully understand the anger, uncertainty and anxiety many of you are feeling right now. We’re feeling it too,” he said. “Over the next couple of days, we will be meeting with the company to begin working through these issues and to get clarity on what this means for all of us, for our jobs, our families and our future.”
GM emphasized that Canada remains central to its North American operations, highlighting ongoing production in Oshawa and St. Catharines, as well as a new $600-million battery-materials facility under construction in Bécancour, Que.
$500M government investments in question
The production announcement comes after strong earnings for GM and a record-high stock price posted on Tuesday. The 2021 CAMI plant retooling cost $2 billion, with about $500 million coming from Ontario and Ottawa.
“We understand that this news and the market-driven actions that we’ve had to take affect these agreements,” said Aquilina. “We look forward to continuing our discussions with the government and our partners to identify other opportunities.”
As for what happens with the taxpayer investments, Aquilina said they will talk with their government partners.
Another blow to Ontario’s auto industry
GM’s announcement comes a week after Stellantis said it will invest $13 billion US over the next four years to expand its manufacturing capacity in the U.S. This move will take production of the Jeep Compass out of Ontario and raise concerns about Canadian jobs.
Stellantis said production of the Compass, which was previously slated to be made at the Brampton Assembly Plant, will move to the Belvidere Assembly Plant in Illinois. Stellantis said its new investments will increase its U.S. vehicle production by 50 per cent and add more than 5,000 jobs.
The Brampton plant has been shut down since early 2024 for retooling to build the next generation model of the vehicle, but that work was halted in February as a tariff threat loomed.
Following the Stellantis announcement, Unifor national president Lana Payne said, “Auto jobs are being sacrificed on the Trump altar” and called on the government to take action to protect the jobs.
“Stellantis cannot be allowed to renege on its commitments to Canadian workers, and governments cannot stand by while our jobs are shifted to the United States,” she said.
Both the federal and Ontario governments are expected to face pressure to help secure a new mandate for the CAMI Assembly plant, similar to previous support for EV and battery projects elsewhere in Ontario.
