General Motors Abandons Electric Van Production in Canada Amid Tariff and Tax Credit Shift

General Motors announced on Tuesday that it would be ending production of its electric van in Ontario, Canada, resulting in the loss of approximately 1,200 jobs. The decision was attributed to low demand for the BrightDrop delivery van and the expiration of tax credits for electric vehicles in the United States. According to Unifor, the Canadian union representing auto workers, the company's move was largely influenced by the ongoing trade battle between the United States and Canada, led by former President Donald Trump. This trade battle has made exporting cars to the United States more expensive, which has negatively impacted the Canadian auto industry. "This is a devastating blow to our members and the community of Ingersoll," said Jerry Dias, the former president of Unifor. "We will be working closely with the company to explore all options to mitigate the impact of this decision." The decision by General Motors follows a similar announcement by Stellantis, the parent company of Chrysler, Dodge, and Jeep, which revealed plans to move production of a new Jeep model from an idle factory in Brampton, Ontario, to a plant in Illinois. This move will likely result in the loss of approximately 3,000 jobs in the Toronto suburb. The factory in Brampton had been shut down in 2023 and its workers laid off while the facilities were retooled. In a separate development, General Motors had previously announced plans to eliminate a shift at a pickup factory in Oshawa, Ontario, which will lead to the loss of about 2,000 jobs in that community. The company cited low demand for its pickup trucks as the reason for the decision. The automotive industry in Canada has faced significant challenges in recent years, including the expiration of tax credits for electric vehicles and the ongoing trade battle with the United States. The industry has also been impacted by the COVID-19 pandemic and the shift towards electric and autonomous vehicles. As the auto industry continues to evolve, General Motors' decision to end production of its electric van in Ontario highlights the need for the company to adapt to changing market conditions and consumer demand. The company's decision also underscores the importance of government policies and trade agreements in supporting the automotive industry. The current status of the factory in Ingersoll, Ontario, is unclear, and it is uncertain what the future holds for the workers who will be impacted by General Motors' decision. The company has not announced any plans to retool the facility or explore alternative uses for the site. *Reporting by Nytimes.*