Canada’s subsidiary of General Motors said on Friday that it is temporarily halting production and cutting staff at an assembly plant in Ingersoll, Ontario, because of lower-than-expected demand for its electric delivery vehicles.
GM Canada said the decision to halt production at the CAMI Assembly through most of the spring and summer is related to market demand and high inventory for the BrightDrop vehicle — and not because of the tariffs the United States has imposed on Canadian vehicle production.
Company spokesperson Jennifer Wright said in a statement that GM Canada is making “operational and employment adjustments to balance inventory and align production schedules with current demand.”
She said the company remains committed to keeping BrightDrop production at the CAMI plant and will support employees through the transition.
Unifor, Canada’s largest private sector union, said the decision to halt and then reduce production of the vehicle is devastating for union members, their families and the whole Ingersoll community.
The union says that after a brief re-opening in May, the plant will be idled until October, after which it will run on a single shift that will mean the indefinite layoff of around 500 workers.
This story was originally featured on Fortune.com