
GM's EV Plant in Ontario Faces Layoffs Amid Sluggish Demand and Tariff Challenges
Ingersoll plant idles now
Tariffs cloud EV hope
INGERSOLL, Ontario - General Motors' ambitious plans for electric vehicle (EV) production in Canada have hit a significant roadblock, as the company announces layoffs at its CAMI Assembly plant in Ingersoll, Ontario [1][2][3][4][5].
In late 2022, GM launched production of BrightDrop electric commercial vans at the CAMI plant, with initial projections targeting 50,000 units annually by 2025 [1][2][3][4][5]. The launch was celebrated as a milestone for Canada's EV industry, with former Prime Minister Justin Trudeau in attendance [1][2][3][4][5].
However, the optimism surrounding the project has waned due to sluggish demand and production slowdowns. In April 2025, GM announced plans to idle the plant for several months, with production set to resume in October on a single shift [1][2][3][4][5].
Bob Pulham, a Unifor representative at the plant, expressed concern over the situation: "I feel bad for all 600 that are being laid off. It's a horrible position to be put in," he said in an interview [1][3][4][5]. The layoffs are expected to affect about half of the plant's 1,200 workers [1][2][3][4][5].
The challenges facing Canada's EV market extend beyond this single plant. Industry experts point to several factors contributing to the slowdown, including high interest rates, inflation, and recent changes in EV incentives [1]. Additionally, new tariff rules under the United States-Mexico-Canada Agreement (USMCA) have further complicated the situation for Canadian EV manufacturers [1].
These developments raise questions about the future of EV manufacturing in Canada and the government's strategy to position the country as a leader in the global transition to electric vehicles. As the industry grapples with these challenges, stakeholders are calling for a reassessment of policies and incentives to stimulate EV adoption and production in Canada [1].
The situation at the Ingersoll plant serves as a stark reminder of the volatility in the emerging EV market and the complex interplay of economic factors, government policies, and consumer demand that shape its trajectory.