"These Bright Drop vans are a specialized electric delivery van for commercial customers and, quite simply, we just have not seen demand for these vehicles climb to the levels that we initially anticipated," said Kristian Aquilina, GM Canada's president and managing director. "This has nothing to do with tariffs or trade. It's simply a demand and a market-driven response."

The news is a blow to the plant’s 1,200 workers, many of whom have been laid off since the spring.

"This news was devastating for all of us, especially for the membership of our local," said Mike Van Boekel, president of Unifor Local 88, in a letter to its members.

BrightDrop's launch in 2021 was billed as a significant step in GM's push toward an all-electric future. But the company said the commercial EV sector has developed much more slowly than expected.

The Ingersoll plant had been operating below capacity since production began in late 2022, following a $1-billion retooling investment supported by the federal and provincial governments.

The factory’s hourly employees will receive six months' salary, along with possible lump-sum payments and other benefits, in line with the provisions of the collective agreement with Unifor.

GM emphasized that Canada remains central to its North American operations, highlighting ongoing production in Oshawa and St. Catharines, as well as a new $600-million battery-materials facility under construction in Bécancour, Quebec.