GM Halts Electric Van Production In Ontario Amid Sluggish Sales: 1,200 Employees Affected

General Motors Co. GM has decided to pause the production of its electric commercial vans at its Ontario plant due to sluggish sales.

What Happened: The production halt is not linked to recent auto tariffs, according to a report by Reuters. GM has said that it is making adjustments to balance inventory with demand.

This move will temporarily affect 1,200 workers at the CAMI Assembly plant, as confirmed by the union Unifor.

The layoffs will commence on April 14, with workers expected to return in May for limited production.

Production is set to resume in October 2025 after retooling for the 2026 model. However, the plant will operate on a single shift, resulting in indefinite layoffs for nearly 500 workers, according to Unifor.

See Also: Bernie Sanders Warns: ‘The Job You Have Today Ain’t Going To Be Here In 10 Or 15 Years,’ As AI And Robotics Threaten US Workforce

Lana Payne, Unifor National President, described the decision as a “crushing blow” to families dependent on the plant. Canadian Prime Minister Mark Carney and Conservative leader Pierre Poilievre expressed their support for affected workers, emphasizing efforts to protect the auto sector.

Why It Matters: The decision by GM to halt production comes amid broader challenges in the automotive industry, including the impact of tariffs and fluctuating demand.

The Trump administration’s 25% tariffs on the auto sector could cost the industry over $108 billion. Although these tariffs were not a direct factor in GM’s decision, they have contributed to an environment of uncertainty.

Additionally, a Goldman Sachs analysis highlights that both tariff issues and weaker consumer demand are affecting U.S. auto sales and global production forecasts.

Furthermore, recent layoffs at Stellantis NV and GM’s own expansion plans reflect the varied responses by automakers to these economic pressures.

General Motors holds a momentum rating of 62.11% and a growth rating of 50.73%, according to Benzinga's Proprietary Edge Rankings. The Benzinga Growth metric evaluates a stock’s historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance. For an in-depth report on more stocks and insights into growth opportunities, sign up for Benzinga Edge.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read Next:

• Cathie Wood’s Ark Invest Offloads Uipath, Prime Medicine, And Repare Therapeutics

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock