It hasn’t been a good year for autoworkers in general, but Canadian autoworkers seem to have it particularly tough. On top of tariffs from the US, the country where most of their production ends up, Canadian autoworkers also have to deal with slowing demand for electric vehicles in the US – something that has only been exacerbated by the elimination of the generous federal EV tax credit.
The effects of those issues are now coming to the fore. First Stellantis announced plans to move planned production of the next-generation Jeep Compass from its Brampton Assembly plant in Ontario to the US, and this week General Motors announced it will end production of its Chevrolet BrightDrop 400 and 600 electric delivery vans at its CAMI Assembly plant also in Ontario. In announcing the plans, GM CEO Mary Barra specifically mentioned the changing regulatory framework and elimination of the federal tax credit.
Automakers Could Be Taken To Court
Chevrolet BrightDrop Production At CAMI Assembly Plant
Chevrolet
Speaking to reporters on Tuesday, including Canada’s National Observer, Ontario Premier Doug Ford threatened GM with legal action for breaking its contract with the state and said the automaker needs to find a new product for the CAMI plant. The plant employs around 1,200 staff and has already been paused since May due to low demand for the BrightDrop vans. GM predicted annual production of 50,000 units, but in 2024 fewer than 2,000 examples are thought to have been sold across both the US and Canada.
In 2022, Canada’s federal government and Ontario each pledged up to $259 million to back GM’s investments in the CAMI plant as well as the Oshawa Assembly plant, which currently builds Chevrolet Silverado pickups. The funding formed part of GM’s broader $2 billion initiative aimed at expanding EV production in Canada.
If this all sounds oddly familiar, there’s a good reason for that. Canada’s Industry Minister, Mélanie Joly, last week threatened Stellantis with legal action over what she claimed were broken agreements dealing with the automaker’s production plans in the country. It came after Stellantis announced a US investment of more than $13 billion spanning the next four years, including building the next Compass in Illinois.
Canada Still Waiting On Answers
2026 Jeep Compass – ExteriorStellantis
Neither GM nor Stellantis have announced what comes next for their Canadian plants. However, in a statement to National Observer, Kristian Aquilina, president and managing director of GM Canada, said the automaker is working closely with its employees, the Unifor union, and the Canadian and Ontario governments to evaluate next steps for the future of the CAMI plant. LouAnn Gosselin, head of communications for Stellantis in Canada, also previously told Canadian media that the automaker has plans for the Brampton plant and will announce them following discussions with the Canadian government.
Canadian Prime Minister Mark Carney was in Washington earlier this month looking to reach a deal on tariffs, but no deal was made. The minister responsible for Canada-US trade, Dominic LeBlanc, is currently in Washington trying to hammer a deal.
Sources: National Observer
