General Motors Cuts 500 Jobs with Canada Shift Reduction

• GM will return the Oshawa plant to two-shift operation after temporarily adding a third shift to meet post-pandemic pickup truck demand and replenish inventories
• Unifor claims GM rejected a proposal to keep the third shift through 2026 and is shifting production to the U.S. in response to Washington's 25% tariff on Canadian-built vehicles
• GM has invested C$280 million ($207 million) as part of over C$2.6 billion in Canadian manufacturing over five years, and criticized Canada for allowing up to 49,000 Chinese electric vehicles with only a 6.1% tariff

General Motors Cuts 500 Jobs in Canada Amid Shift Reduction

General Motors announced Thursday it will eliminate approximately 500 jobs at its Oshawa, Ontario assembly plant when it reduces operations from three shifts to two on Sunday. The automaker attributes the change to normalizing post-pandemic demand and replenished pickup truck inventories.

Key Figures:

• 500 direct GM job cuts
• Up to 1,200 total jobs affected across the auto supply chain
• C$280 million ($207 million) investment committed to the plant for next-generation gas-powered trucks
• Over C$2.6 billion invested in Canadian manufacturing over five years
• 25% U.S. tariff on Canadian-built vehicles
• 49,000 Chinese electric vehicles allowed into Canada with just 6.1% tariff

Dispute Over Causation:

Union Unifor directly blames U.S. tariffs imposed by the Trump administration, claiming GM is shifting production to avoid the 25% levy on Canadian-built vehicles. Unifor National President Lana Payne accused GM of "caving to Donald Trump" at workers' expense. However, GM spokesperson Jennifer Wright explicitly denied any connection to tariffs or Canada's Chinese EV import policies.

Market Context:

The Oshawa plant remains GM's only North American facility producing both light- and heavy-duty Chevrolet Silverado pickups on one line. GM also announced in October it would cancel production of its electric BrightDrop van in Canada due to slow commercial EV market development, expecting a fourth-quarter charge.

Implications:

This development highlights ongoing tensions in North American auto manufacturing, balancing tariff pressures, Chinese competition concerns, and shifting vehicle demand. The cuts add stress to Canada's auto sector amid broader trade policy uncertainty.