General Motors shift reduction in Canada to cut 500 jobs

By Wa Lone

TORONTO, Jan 29 (Reuters) - General Motors GM.N said on Thursday it will eliminate roughly 500 jobs in Canada when a plant in Oshawa, Ontario, cuts a shift, adding more pain to one of the sectors that has been most affected by U.S. tariffs.

General Motors Canada will return its Oshawa Assembly Plant to a two‑shift operation on Sunday, ending a temporary third shift added to meet post‑pandemic pickup‑truck demand and replenish low inventories, spokesperson Jennifer Wright said by phone.

Auto worker union Unifor said in a statement that up to 1,200 workers across the auto supply chain are expected to finish their final shifts on Friday as General Motors scales back its Canadian operations.

The union accused GM of shifting production to the U.S. after Washington imposed a 25% tariff on Canadian‑built vehicles last year and said the company rejected a proposal to keep the third shift through 2026.

“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,” Unifor National President Lana Payne said in a statement.

GM's Wright said the change is not linked to U.S. tariffs.

CANADA TO ACCEPT CHINESE ELECTRIC VEHICLES

GM has criticized Canada for allowing up to 49,000 Chinese-made EVs into the country with a 6.1% tariff. Wright said the changes were unrelated to Canada’s evolving policy toward Chinese electric‑vehicle imports.

“Oshawa has a very long runway ahead, supported by a $280 million investment to build the next generation of gas‑powered trucks,” she said.

The C$280 million ($207 million) commitment is part of more than C$2.6 billion the company says it has invested in Canadian manufacturing over the past five years.

Oshawa remains GM’s only North American plant building both light‑ and heavy‑duty Chevrolet Silverado pickups on the same line, and portions of the facility continue to support aftermarket stamping and sub‑assembly operations. GM said its St. Catharines, Ontario, propulsion plant will continue producing next‑generation V8 engines for the company’s truck and SUV lineup, while CAMI Assembly remains under assessment for future programs.

GM is also canceling production of its electric BrightDrop van, it said in October, with executives citing slow development in the commercial EV van market. The vehicle is produced in Canada. It expects to record a charge relating to the axed program in the fourth quarter.

($1 = 1.3503 Canadian dollars)

(Editing by Caroline Stauffer and Rod Nickel)

((wa.lone@thomsonreuters.com))