General Motors is shutting down its electric-vehicle plant in Ingersoll, Ont., for about 20 weeks as part of production cuts that union officials say will trigger indefinite layoffs of about 500 workers.

The automaker said production cuts at Canada’s only auto plant dedicated solely to assembling electric vehicles are due to weak demand for its electric delivery vans. The production cuts are a blow to the Canadian auto sector, which is already being battered by U.S. tariffs, and a worrying sign for the EV transition. 

500 jobs cut: GM Canada told workers that temporary layoffs at the plant will begin next week, with limited production scheduled in May, according to Unifor. Once that run is complete, the plant won’t reopen again until October 2025, at which time it will run on a single shift, the union said. That won’t be enough to employ the 1,200 unionized workers currently working there, Unifor said. 

GM said the cutbacks are a response to “current demand” and that the plant east of London, Ont., is not closing down permanently and will continue to make BrightDrop vans and EV batteries. 

“GM remains committed to the future of BrightDrop and the CAMI plant and will support employees through the transition,” said a statement sent by spokesperson Marie Binette about the plant, which is named CAMI after its former occupants, Canadian Automotive Manufacturing Inc. 

Economic worries grip industry: Workers at the plant will enter a difficult job market as layoffs sweep the industry. New tariff policies have targeted the auto sector and made it harder for car dealers to woo customers. The CAMI plant’s local union branch warned two weeks ago that U.S. tariff policies could grind North America’s auto sector to a halt. Canadian politicians have pledged during the federal election campaign to provide tariff-related supports to the industry.

Another GM Canada plant, in Oshawa, Ont., cut shifts this week due to a shortage of transmissions from Ohio, which GM said was not tariff-related. Stellantis paused operations at its Windsor assembly plant for two weeks this month, citing the tariffs.

EV transition: The plant’s conversion to make electric BrightDrop delivery vans in 2023 marked a major investment in electrification by GM, which plowed resources into the fastest plant retool in its history. 

BrightDrop vans are used by companies like Walmart and FedEx to deliver packages. But inventory of the vehicles has backed up on both sides of the U.S.-Canada border amid low business and consumer confidence, and declining government support for EVs. Prior to Friday’s announcement, Unifor national president Lana Payne urged Canada Post to consider purchasing BrightDrop vans to offset the dropping demand. 

While GM did not cite the tariffs in its recent production cuts, Payne said in a statement that “the reality is the U.S. is creating industry turmoil.”

“Trump’s short-sighted tariffs and rejection of EV technology is disrupting investment and freezing future order projections,” she said. “Make no mistake—the world is moving rapidly towards electrification. If Canada and the U.S. hit pause now, we may never catch up.”