General Motors has officially announced the discontinuation of BrightDrop electric delivery van production at the CAMI Assembly plant in Ingersoll, casting uncertainty over the future of the southwestern Ontario facility. Production at the plant was halted in May due to declining demand in the commercial EV market. The company stated that BrightDrop vehicles will not be manufactured elsewhere, signaling the end of a line that was pivotal to Ontario’s electric vehicle aspirations.
Kristian Aquilina, GM Canada’s president and managing director, explained that the specialized electric delivery vans did not meet the expected demand levels, attributing the decision solely to market dynamics rather than tariffs or trade issues. The news came as a significant blow to the 1,200 workers at the plant, many of whom have been on layoffs since the spring.
The launch of BrightDrop in 2021 was a strategic move by GM toward an all-electric future. However, the commercial EV sector’s growth has been slower than anticipated, coupled with regulatory conditions and stagnating EV adoption by the main U.S. customer. Aquilina highlighted the evolving situation, where expected demand failed to materialize, leading to the decision to cease production.
The Ingersoll plant has operated below capacity since its inception in late 2022, following a substantial retooling investment of $1 billion supported by federal and provincial governments. CAMI Assembly has been a crucial economic pillar for the Ingersoll region since its establishment in 1989.
Regarding the future of CAMI workers, Aquilina assured that the current situation is a temporary layoff, with discussions underway to explore alternative opportunities for the plant. The company expressed its commitment to Canada, emphasizing ongoing operations in Oshawa and St. Catharines, as well as the construction of a new $600 million battery-materials facility in Bécancour, Que.
The production decision follows GM’s strong financial performance and a record-high stock price. The retooling of the CAMI plant in 2021 cost $2 billion, with a significant portion funded by Ontario and Ottawa. Aquilina mentioned ongoing discussions with government partners to identify potential opportunities in light of the market-driven actions taken.
The announcement adds to concerns in Ontario’s auto industry, following Stellantis’ recent decision to shift production of the Jeep Compass to the U.S., raising worries about Canadian jobs. Both federal and Ontario governments face mounting pressure to secure a new mandate for the CAMI Assembly plant, similar to their support for EV and battery projects elsewhere in the province.