GM cuts 500 Canada jobs, moves production back to US

General Motors announced Thursday it will eliminate approximately 500 jobs at its Oshawa, Ontario assembly plant when operations return to two shifts beginning on 2 February. Unifor, Canada’s largest private-sector union, estimates that up to 1,200 workers across the broader automotive supply chain will also be affected by the production cut. 

GM spokesperson Jennifer Wright told Reuters that the facility will continue building next-generation full-size internal combustion engine pickup trucks supported by a fresh investment of CA$280m (US$207m). In a press release, the automaker characterised the move as ending a temporary measure intended only to meet post-pandemic pickup truck demand and replenish depleted inventories. 

Wright denied any connection to US tariffs—and the associated persistent threats by President Donald Trump against Canada—or the country’s recently introduced policy allowing for 49,000 Chinese-made electric vehicles to be imported into the country at a 6.1% tariff rate. But despite characterising the third shift as a temporary measure to meet spiking demand, production is actually being transferred to GM’s Fort Wayne, Indiana facility, which already manufactures full-size trucks.

Unifor National President Lana Payne lambasted the automaker on this basis. “General Motors has made a clear decision to cave to Donald Trump rather than stand up for its loyal Canadian workforce, making the workers in Oshawa pay for that appeasement with their jobs,” she remarked. “It is misguided for General Motors to think it can get away with consistently diminishing their production footprint in Canada and still be the number one seller of vehicles in the Canadian marketplace. GM’s decision is not only short-sighted but fails to recognise the mood of Canadians and Canadian workers.”

Unifor presented GM with a proposal to retain the third shift until fall 2026 contract negotiations, which the company rejected. All hourly seniority employees affected by the production adjustment will receive GM-paid Supplemental Unemployment Benefits combining with Employment Insurance to equal 70% of regular weekly earnings, along with continued healthcare coverage. Ontario Premier Doug Ford—who had recently stood with the automaker in calling for a boycott of Chinese EV imports—called the decision “very disappointing” and pledged provincial support for affected workers in defence, life sciences and other sectors.

The announcement came during the same week GM reported more than US$12bn in pre-tax earnings for 2025, alongside plans to boost shareholder returns through dividend increases and a US$6bn share buyback programme. It should be noted that GM Canada has invested more than CA$2.6bn in Canadian manufacturing over the past five years.

The Oshawa reduction marks the latest blow to Ontario’s automotive sector, with GM’s CAMI Assembly Plant in Ingersoll and Stellantis’ Brampton facility both currently idled without confirmed product allocations. GM announced in October it would cancel production of its BrightDrop electric van—manufactured in Canada—citing slow development in the commercial electric vehicle van market, with a related charge expected in fourth-quarter results. 

Unifor continues demanding that federal government automotive policy adopt a “sell here, build here” framework for manufacturers operating in Canadian markets.