After pausing production last spring and exploring strategic options for its struggling BrightDrop unit, General Motors (NYSE:GM) has decided to discontinue the electric commercial van, citing weak EV demand and higher costs tied to shifting regulations and imports from Ingersoll, Ontario. Production will not be relocated.
“The decision to end production of the BrightDrop electric delivery van is driven by market demand and in no way reflects the commitment and skill of our workforce at CAMI,” said Kristian Aquilina, managing director of GM Canada.
“The decision is part of broader adjustments the company is making to North America EV capacity,” the company said in a statement.
The BrightDrop was the only vehicle being produced at GM’s Canadian Automotive Manufacturing Inc (CAMI) facility. The plant was retooled in 2022 to shift production from the Chevy Equinox to BrightDrop.
With the CAMI plant to be shut down, GM (NYSE:GM) said it will work with the Canadian autoworkers union, Unifor, and follow the provisions of the collective agreement regarding severance. Hourly employees will be paid six months of salary and the potential for lump sum payments and other benefits.
General Motors (NYSE:GM) did not disclose any associated costs with the closure of the facility.