Production Ceases at CAMI Assembly
General Motors (GM) confirmed on October 21, 2025, the immediate end of production for its BrightDrop electric delivery vans at the CAMI Assembly plant in Ingersoll, Ontario. This decision follows a period of suspended production since May 2025 and marks the effective discontinuation of the BrightDrop Zevo 600 and Zevo 400 electric delivery van lineup. The company stated that production will not be relocated to another facility.
The announcement has significant implications for the over 1,100 unionized employees at the plant, many of whom were expecting to return to work in November. GM Canada President Kristian Aquilina emphasized that the decision was 'simply a demand and a market-driven response' and did not reflect the workforce's commitment or skill. Affected hourly employees are set to receive six months of salary, along with potential lump-sum payments and other benefits.
Factors Behind the Decision
GM attributed the halt in production to several key factors:
- Slower-than-expected commercial EV market development: The demand for electric delivery vans did not reach anticipated levels.
- Changing regulatory environment: Shifts in regulations contributed to a more challenging business landscape.
- Elimination of US tax credits: Specifically, the expiration of the Section 45W Commercial Clean Vehicle Credit, which offered up to $40,000 per EV, made the business less viable.
GM CEO Mary Barra, speaking on the company's Q3 2025 earnings conference call, stated, 'We have decided to stop BrightDrop production at CAMI Assembly and assess the site for future opportunities. This is not a decision we made lightly because of the impact on our employees.' The company anticipates taking a US$1.6 billion charge in its third quarter as it re-evaluates its electric vehicle strategy.
Uncertain Future for Ingersoll Plant
The future of the CAMI Assembly plant, which was retooled with a $2 billion investment in 2021 (including approximately $500 million from Canadian and Ontario taxpayers) to become Canada's first full-scale EV manufacturing plant, remains uncertain. GM has indicated it will 'assess the site for future opportunities' but has not provided specific plans.
Local officials and union representatives have expressed profound disappointment. Ingersoll Mayor Brian Petrie described the news as 'devastating and overwhelmed,' calling it a 'worst-case scenario.' Unifor National President Lana Payne linked the decision to 'dangerous and destabilizing auto policies' from the US, including tariffs and the undoing of EV supports, arguing that workers are 'paying the price for Trump's political interference and GM's failure to hold the line.' Federal Industry Minister Mélanie Joly and Ontario Economic Development Minister Vic Fedeli have signaled their intent to work with Unifor and GM to secure a new product mandate for the plant.
5 Comments
Eric Cartman
The expiration of tax credits clearly hit GM's business case hard, making the project unviable. However, it highlights a broader issue where our EV transition is too reliant on temporary incentives rather than sustainable, organic market growth.
Kyle Broflovski
Acknowledging GM's need to adapt to changing market conditions is fair, but the suddenness of this decision after such a massive public and private investment raises serious questions about long-term planning and corporate responsibility. The human cost for the workers is immense.
Eric Cartman
It's understandable that GM would pivot when demand wasn't met, but the scale of the investment and the human impact on the Ingersoll plant are immense. This situation underscores the significant risks involved in betting big on emerging technologies without robust contingency plans.
Kyle Broflovski
Better to stop now and reassess their EV strategy than to keep bleeding money. Pragmatic move.
Coccinella
So much for Canada's 'EV hub' dream. Another corporate betrayal after taking public funds.