In a significant blow to the Canadian automotive industry, General Motors (GM) has announced a temporary halt and subsequent reduction in production of its BrightDrop electric delivery vans at the CAMI Assembly Plant in Ingersoll, Ontario. This decision, revealed by Unifor Local 88 on April 11, 2025, is expected to lead to hundreds of indefinite layoffs, with the first wave of temporary layoffs set to begin on April 14, 2025.
According to Unifor, the union representing 1,200 workers at the plant, employees will return for limited production in May 2025, but operations will cease entirely until October 2025. During this downtime, GM plans to undertake retooling work to prepare for the production of the 2026 model year of commercial electric vehicles. When production resumes in October, the plant will operate on a single shift, which is anticipated to result in the indefinite layoffs of nearly 500 workers.
“This is a crushing blow to hundreds of working families in Ingersoll and the surrounding region who depend on this plant,” stated Unifor National President Lana Payne. “General Motors must do everything in its power to mitigate job loss during this downturn, and all levels of government must step up to support Canadian auto workers and Canadian-made products.”
GM Canada spokesperson Jennifer Wright emphasized that the operational changes are necessary to balance inventory and align production schedules with current market demand. She noted that the slowdown in production is “directly related” to lower market demand for the BrightDrop vans, which have struggled to compete in a challenging marketplace.
Reports indicate that GM has faced difficulties selling its BrightDrop delivery vehicles in the U.S. market, where competitors like Ford offer similar models at significantly lower prices. In March 2025, the Detroit Free Press highlighted that before incentives, Ford’s electric van is priced over $20,000 cheaper than GM’s offering. In 2024, GM sold just over 1,500 BrightDrop vans in the U.S., a figure that has raised concerns about the viability of the product line.
Unifor representatives have pointed to U.S. President Donald Trump’s tariffs as a critical factor exacerbating the situation. The imposition of a 25 percent tariff on Canadian-made vehicles sold in the U.S. has reportedly added over $15,000 to the price of a BrightDrop cargo van, which retails for more than $70,000 in the U.S. This tariff structure, combined with the high price of the BrightDrop vans, has significantly hampered sales and market penetration.
“This is awful news; it is devastating,” said Mike Van Boekel, chairperson of Unifor Local 88. “Our members have endured so much — from retooling disruptions to months of rotating layoffs — and now they’re facing a major production slowdown and job loss.”
As the community grapples with the impending job losses, local leaders are expressing their concern. Ingersoll Mayor Brian Petrie stated, “My thoughts go out to the workers who are affected. We worry about their families, that they are taken care of. This is our largest employer, our largest taxpayer. It affects everything from the grocery store to the coffee shop and suppliers.”
The challenges faced by the CAMI Assembly Plant are not isolated. Stellantis’s Windsor Assembly Plant, which produces Chrysler Pacifica minivans and electric Dodge Chargers, also announced a temporary closure due to the same tariff issues. This has led to approximately 3,500 layoffs at Stellantis and another 2,000 at parts suppliers, highlighting the broader impact of tariff policies on the Canadian automotive sector.
Brendan Sweeney, director of the Trillium Network for Advanced Manufacturing, noted that the BrightDrop’s niche market positioning and high price tag have contributed to its poor sales. He stated, “Cami makes a niche product, and there was not much demand for that product. But tariffs are adding extra cost, and that will mean lighter demand than GM would like.”
Amid this turmoil, Unifor is lobbying various levels of government to procure BrightDrop vans for use in public services, particularly as Canada Post plans to invest $1 billion in a new delivery fleet focused on electric vehicles. “The BrightDrop electric delivery van is built in Canada by Canadian workers — it’s the smart choice for Canadian business, government agencies, and for our economy,” Payne asserted.
The situation at the CAMI plant underscores a critical turning point for the North American auto industry, as it navigates the complexities of market demand, international tariffs, and the transition to electric vehicle production. “Make no mistake — the world is moving rapidly towards electrification. If Canada and the U.S. hit pause now, we may never catch up,” Payne warned. “We risk surrendering our future unless we act decisively to support our own industry.”
As the community of Ingersoll braces for the impact of these layoffs, the call for government support and strategic investment in the domestic auto industry becomes increasingly urgent. The future of the CAMI Assembly Plant and its workforce hangs in the balance as stakeholders seek solutions to mitigate the effects of tariffs and bolster the production of electric vehicles in Canada.
