General Motors (GM) has laid off 500 workers at its CAMI plant in Ingersoll, Ontario, temporarily suspending production of BrightDrop electric delivery vans. The move, effective April 14, 2025, comes as demand for BrightDrop vans remains sluggish—GM sold just 274 units in Q1 2025, far below expectations. The company cited the need to ‘balance inventory’ and retool the plant for the 2026 model year, though operations will resume with only one shift by October. According to TechCrunch, this decision highlights broader challenges in GM’s commercial EV strategy—especially as rival Rivian gains traction in the market.
Why BrightDrop Struggled to Gain Traction
GM launched BrightDrop in 2021 as its dedicated electric commercial vehicle brand, targeting fleet operators like FedEx and Amazon. However, sales never matched projections, with fewer than 1,000 units sold over the past two years combined. Battery-related recalls and operational hurdles further dented progress, leading GM to fold the brand into Chevrolet in 2024.
Fleet operators, a key market for BrightDrop, have been cautious in adopting EVs due to high upfront costs and infrastructure challenges. One industry analyst noted, ‘Commercial customers are price-sensitive—unlike early-adopter consumers, they’re waiting for total cost parity and charging reliability.’
| BrightDrop Sales Data (Q1 2025) | Units Sold |
|---|---|
| BrightDrop Zevo 600 | 274 |
| Projected Quarterly Target | ~1,500 |
Rivian’s Market Gains Put Pressure on GM
While GM backpedals, Rivian has seen steady demand for its electric vans, thanks partly to its exclusive deal with Amazon. Rivian’s RCV platform, backed by advanced battery tech and streamlined production, has secured over 100,000 orders from Amazon alone.
Could GM catch up? Analysts say retooling the CAMI plant could help, but the gap in commercial EV adoption is widening. ‘Rivian’s early partnerships gave it a lead,’ says auto industry consultant Michael Dunne. ‘GM needs more than just a refreshed model—it needs a compelling fleet solution.’
What’s Next for GM?
GM insists the pause is temporary, but the layoffs and production cuts raise questions about BrightDrop’s long-term viability. The company may refocus on broader EV segments, like SUVs, where it has seen stronger demand. Meanwhile, geopolitical factors—such as U.S. tariffs on Canadian-built vehicles—add another layer of uncertainty, though GM denies these influenced its decision.
For now, the CAMI plant’s downsizing reflects a harsh reality: commercial EVs remain a tough sell. With Rivian’s momentum and fleet buyers hesitant, GM must rethink its strategy—or risk falling further behind.
