Following Stellantis, GM Also Halts Electric Commercial Vehicle Production
The New York Times (NYT) reported on October 21 (local time) that US automaker General Motors (GM) is set to halt electric commercial vehicle production in Ontario, Canada, resulting in the loss of approximately 1,200 jobs.
According to the NYT, GM cited the expiration of US electric vehicle tax credits and weak demand for its electric commercial vehicle brand BrightDrop as reasons for the production halt. GM CEO Mary Barra stated during a conference call, "The commercial electric van market is growing much more slowly than expected."
GM also explained in a statement that "this decision is part of a broad adjustment of North American electric vehicle production capacity." The company did not disclose specific future plans for the plant, only adding that it would continue discussions with union and government officials.
Unifor, Canada’s largest labor union, attributed GM’s decision to the trade war triggered by US President Donald Trump. Lana Payne, president of Unifor, criticized the move, saying, "More than 1,000 workers and their families are paying the price for Trump’s political intervention and GM’s failure to respond."
Since April, the United States has imposed a 25% tariff on imported vehicles, and starting November 1, a 25% tariff will also be applied to medium and large trucks. These measures are part of the Trump administration’s "America First" policy and efforts to strengthen protectionism.
GM received 1 billion Canadian dollars (approximately 1.02 trillion won) in support from the Canadian federal government and the Ontario provincial government to remodel its Ingersoll plant in Ontario, where it has produced its BrightDrop electric truck brand since 2022. The plant temporarily halted production in May due to poor sales but was scheduled to resume operations next month.
This news comes just over a week after Stellantis announced its own production halt. Last week, Stellantis revealed plans to move production of its Jeep Compass SUV from Canada to the United States. Stellantis had originally planned to manufacture the Jeep Compass at its Brampton plant near Toronto, Ontario.
Melanie Joly, Canada’s Minister of Industry, who previously warned Stellantis of legal action, responded cautiously to GM’s announcement. She stated that, in GM’s case, the production halt was due to commercial reasons, but added that the government would seek ways to restart the plant with other vehicle production and ensure that GM fulfills any remaining obligations related to previous government funding.
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