GM Canada says it is pausing production at its electric vehicle (EV) plant in Ingersoll, Ontario, due to low demand for its EV offerings, laying off around 500 employees.
The plant, located east of London, Ont., produces Chevrolet BrightDrop electric delivery vans and electric batteries for passenger vehicles. It started production on the vans in 2023.
Unifor, the union representing the workers, said they’ve been told by GM that “temporary layoffs” will start on April 14. It added that workers would be returning in May for “limited production.”
The union said operations will then be paused and stay idle until October.
However, when production restarts in October, it will be on a single shift operation for the “foreseeable future,” Unifor said, leading to the “indefinite layoff” of nearly 500 workers.
“GM plans to complete retooling work to prepare the facility for production of the 2026 model year of commercial electric vehicles,” a statement on Unifor’s website said.
Related Stories
GM said in a statement that the halt in production is due to a reduction in market demand, and that it will support employees “through the transition.”
“This adjustment is directly related to responding to market demand and re-balancing inventory. Production of BrightDrop and EV battery assembly will remain at CAMI,” the company told The Epoch Times in an email.
“GM remains committed to the future of BrightDrop and the CAMI plant.”
Unifor said the news was “devastating” for its members.
“This is a crushing blow to hundreds of working families in Ingersoll and the surrounding region who depend on this plant,” said Unifor National President Lana Payne.
Payne called on “all levels of government” to support Canadian auto workers and Canadian-made products.
GM had previously received government support for upgrades at a number of its factories, including the one at Ingersoll.
Other EV Facilities Close in Canada
The move follows disruptions to other Canadian EV-related plants that received government subsidies, including Northvolt.
Northvolt North America’s parent company filed for bankruptcy in Sweden in 2024. The North American branch has a project planned to build an EV battery plant in Quebec. But it has not been clear how the bankruptcy filing will impact the project.
Government subsidies were also given to Umicore for its battery facility near Kingston, Ont.
However, production stopped in 2024 due to declining demand for EVs, and no plan has been released for it to resume.
The leaders of the Liberal and Conservative parties issued statements about the closure, and alluded to the U.S. tariffs on Canada’s auto sector.
Liberal Leader Mark Carney said the layoffs were “deeply painful news” for workers in Ingersoll and the auto sector.
In a post on social media, he said his government was looking to protect workers and build supply chains.
“We’ve made it easier for affected workers to access support, including waiving the EI waiting period,” Carney said in the post.
“Our Canada-U.S. cabinet committee has laid plans to ensure that, whichever government Canadians choose in this important election, Canada is ready to negotiate with the United States from a position of strength.”
Conservative Party Leader Pierre Poilievre said he was saddened by the layoffs.
“We will keep them working, so they can keep their jobs as we fight through this mess,” he said in a post on X.
“I will stand up for Canada and protect our autoworkers by axing the GST on Canadian-made cars and providing temporary liquidity to companies affected by these tariffs through the Keep Canadians Working Fund,” he said.
Reuters contributed to this article.
