General Motors will cut production at its Oshawa Assembly plant in Canada, moving from a three-shift to a two-shift schedule, the company and workers’ union confirmed on Friday.
The decision comes amid weakening demand for pickup trucks and continued pressure from US trade policies.
The Oshawa facility currently builds light- and heavy-duty Chevrolet Silverado pickups for the North American market.
However, these models are also manufactured at GM plants in the US and Mexico, offering flexibility to shift production based on regional demand and costs.
Tariffs and soft demand reshape GM’s plans
The reduction follows months of uncertainty triggered by US President Donald Trump’s tariff policies, which have forced automakers to reconsider their supply chains and production strategies.
GM’s move reflects a broader trend among manufacturers facing rising trade barriers and evolving market dynamics.
To realign its operations, GM plans to cut truck exports from Oshawa to the US and pivot the plant’s focus toward the Canadian market, starting this fall.
About 700 jobs affected
The shift reduction is expected to impact around 700 workers at the Oshawa plant.
While GM has not shared specifics on layoffs or redeployments, it stated that it will work with partners to support affected employees during the transition.
Unifor, the union representing roughly 3,000 GM workers at the facility, criticized the move as “reckless,” warning that it jeopardizes both jobs and the local economy.
Ontario Premier Doug Ford described the decision as “extremely tough” for workers and their families, expressing concern over the economic implications of scaling down a major industrial site in the province.
The Oshawa cutback is part of GM’s wider manufacturing strategy in North America.
The automaker is increasing output at its Fort Wayne, Indiana plant, which builds light-duty trucks, according to a Reuters report.
In a separate move last month, GM temporarily halted production of its electric commercial vans at another Ontario facility due to sluggish sales—another sign of strategic realignment in response to shifting market conditions.
As global automakers navigate inflation, shifting consumer preferences, and trade tensions, GM’s decision underscores the challenges of staying agile.
While the company repositions its Canadian operations to better serve local demand, uncertainty looms for hundreds of workers and the broader Oshawa community.
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