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CAMI Assembly

CAMI Assembly is an automotive manufacturing plant located in , , owned and operated by . Established in 1989 as a between and Motor Corporation, the facility initially focused on producing compact sport utility vehicles for both brands. The plant has a history of assembling models such as the Suzuki Sidekick, Geo Tracker, , and later the , contributing significantly to GM's small lineup exported primarily to North American markets. In recent years, with substantial government investments, CAMI was retooled to become Canada's first full-scale production site, manufacturing electric delivery vans starting in 2022 to support commercial fleet electrification. However, on October 21, 2025, General Motors announced the end of BrightDrop van production at CAMI due to insufficient market demand, idling the plant and placing its future utilization under review amid broader industry challenges. This decision affects hundreds of employees and highlights vulnerabilities in EV scaling dependent on sales performance rather than subsidized projections.

History

Establishment and Joint Venture Formation

CAMI Automotive Inc. (CAMI) was formally established in October 1986 as a 50-50 between of Ltd. (GMCL) and Motor Corporation, aimed at assembling compact multi-purpose vehicles (MPVs) and sport utility vehicles (SUVs) for distribution in . The partnership combined Suzuki's engineering proficiency in lightweight, fuel-efficient small vehicles with GM's extensive manufacturing infrastructure and market access in the region. The joint venture's formation followed an agreement announced in August 1986 to invest approximately $500 million in a new greenfield assembly plant located in , selected for its proximity to major highways, suppliers, and the U.S. border, as well as incentives from provincial and local governments. This site, on 1,200 acres of land, was chosen to produce vehicles like the and for export to both companies' dealer networks, addressing growing demand for affordable off-road capable vehicles amid rising fuel prices and regulatory pressures for efficiency. The venture incorporated 's production methods adapted to North American labor standards, with an initial annual capacity target of around 100,000 units. Under the joint ownership structure, decision-making was shared equally, with providing key vehicle platforms and handling much of the local and sales integration; this arrangement allowed both firms to bypass import tariffs while sharing for facility construction, which included stamping, , , and final operations. The establishment marked one of the earliest significant collaborations between a Japanese automaker and a U.S. manufacturer, reflecting broader industry trends toward strategic alliances for cost-sharing and in the face of intensifying global competition.

Early Production and Suzuki Collaboration

The CAMI Automotive plant in , began vehicle assembly operations in 1989 following the 1986 formation of the 50/50 joint venture between of Canada and Motor Corporation, with an initial capital investment supporting production of compact cars and sport utility vehicles for the North American market. The partnership leveraged Suzuki's expertise in lightweight, fuel-efficient platforms to produce badge-engineered models, enabling both companies to meet demand for affordable subcompact and entry-level SUVs while sharing manufacturing costs and technology. Early production focused on models such as the subcompact sedan and hatchback, which were assembled alongside the sport utility vehicle and its GM variants, including the Chevrolet and . also produced the Chevrolet and , drawing on 's Vitara platform for the / line, which emphasized unibody construction and four-wheel-drive options suited to urban and light off-road use. These vehicles targeted budget-conscious consumers, with the plant's flexible assembly lines allowing for shared components and sequential production of - and -branded units to optimize efficiency. By the early 2000s, CAMI had assembled over 1 million units cumulatively, though Suzuki-specific production began winding down, with the ceasing in 2001 amid shifting market demands toward larger vehicles. The collaboration proved vital for Suzuki's North American expansion, exporting assembled and Sidekicks, while providing access to cost-effective small-vehicle production without full-scale investment in dedicated facilities. Annual output during this period approached the plant's 250,000-unit capacity, supported by the CAMI Production System adapted from principles.

Shift to GM Sole Ownership

In December 2009, acquired Motor Corporation's 50 percent stake in CAMI Automotive Inc., transitioning the facility to full ownership under of Ltd. The transaction, announced on December 3, 2009, ended the 20-year established in 1989, with transferring its shares for an undisclosed amount as part of dissolving the collaborative operation. The buyout aligned with broader strains in the -Suzuki alliance, including Suzuki's earlier withdrawal from a global partnership with in amid disputes over technology sharing and market strategies, though the CAMI deal proceeded independently to consolidate 's control over North American production capacity. Post-acquisition, the rebranded as CAMI Assembly and shifted focus exclusively to vehicle programs, phasing out remaining Suzuki-specific production lines such as the , which had already ceased in 2001. This sole ownership enabled to integrate CAMI more seamlessly into its supply chain, supporting subsequent expansions for crossover and models without constraints.

Facility Expansions and Re-tooling

In 2013, invested C$250 million to expand the CAMI Assembly plant, responding to full-capacity operations and rising demand for compact SUVs like the and , which enabled increased production without immediate loss of volume to other facilities. This expansion supported a 5 percent year-over-year production increase in early 2013. By February 2015, GM announced a C$560 million investment to retool CAMI for the third-generation Chevrolet Equinox, including C$190 million for new stamping, welding, and assembly equipment to accommodate redesigned compact crossover production starting in 2017. The project added 400,000 square feet of floor space, expanding the plant's total footprint to 1.7 million square feet across 570 acres, and boosted annual capacity toward 240,000 vehicles. These upgrades positioned CAMI as a key North American hub for mid-size assembly through the late , with ongoing investments in and to maintain competitiveness amid shifting global supply chains. In January 2021, committed over C$1 billion—part of a broader C$2 billion Canadian transformation—to fully retool the facility for production, installing new equipment across 2 million square feet in just seven months starting May 2022. This included government subsidies totaling C$500 million from federal and sources to support the shift. By late 2022, the retooled plant began assembling electric delivery vans, marking Canada's first full-scale EV site.

Transition to Electric Vehicle Production and Recent Shutdowns

In 2021, General Motors announced plans to retool the CAMI Assembly plant for production of electric delivery vans under its BrightDrop division, with assembly commencing in May 2022. Retooling efforts, which involved installing new production equipment across 2 million square feet, began on May 1, 2022, following a $760 million investment to transform the facility into Canada's first full-scale electric vehicle assembly plant. The first BrightDrop Zevo 600 electric cargo van rolled off the line in December 2022, marking the start of commercial EV production at the site and aligning with GM's broader strategy to electrify its commercial vehicle lineup. Production of the vans faced challenges from subdued market demand for electric commercial vehicles, with reporting approximately 4,000 units sold in 2025. In response, halted assembly at CAMI in October 2025, idling the dedicated line and initiating a reassessment of the plant's future role, including potential alternative uses or reallocations. This decision followed earlier production pauses and reflected broader industry trends of scaled-back commitments amid slower-than-expected adoption rates for battery-electric vans. The shutdown impacted CAMI's workforce, with , the union representing employees, noting uncertainty for hundreds of jobs tied to the operations, though stated it would explore opportunities to repurpose the facility. Despite the initial optimism surrounding the transition—highlighted by government support and the plant's designation as a pioneer in Canadian —the rapid end to production underscored vulnerabilities in supply chains and consumer uptake for specialized electric fleets.

Facilities and Operations

Plant Location and Infrastructure

The CAMI Assembly plant is located in , , at 300 Ingersoll Street, on a 582-acre property. The facility spans approximately 2.0 million square feet of manufacturing space, supporting automotive assembly operations. Established in 1989 as a between and , the site's infrastructure initially focused on compact multipurpose vehicle production, with subsequent adaptations for sport utility vehicles like the . In 2022, completed a comprehensive retooling of the plant, converting it into Canada's first full-scale commercial manufacturing facility, including upgrades to , , and supporting systems for electric light commercial vehicles. This transformation, executed in 25 weeks by contractor Alberici, encompassed demolition of legacy equipment, new concrete foundations, installation of specialized tooling, and integration of handling capabilities. A planned production expansion broke ground in early 2023 to supply components, enhancing on-site . Additional infrastructure developments include a dedicated 400,000 square-foot building, which commenced operations in July 2024 to produce modules for CAMI and other facilities. The plant has maintained to landfill certification since 2014 through advanced and waste diversion processes across its operations. Despite recent idling of van production lines in October 2025 due to market demand, the core physical infrastructure remains configured for flexible , with potential for reactivation or repurposing.

Production Capacity and Technology

The CAMI Assembly spans 2.0 million square feet of space on a 582-acre site, enabling high-volume vehicle assembly with flexible lines adaptable to various models. Historically, prior to its pivot to electric vehicles, the facility operated at an annual output of approximately 185,000 units in 2009, primarily SUVs and crossovers like the and . Following ' acquisition of full ownership in 2009 and subsequent expansions, including 400,000 square feet added in 2016, the plant's infrastructure supported multi-shift operations up to three shifts for peak efficiency. In preparation for electric vehicle production, CAMI underwent a comprehensive retooling starting in 2021, backed by over $1 billion in investments, transforming it into Canada's first full-scale manufacturing facility. The retooled lines targeted an initial annual capacity of 30,000 units for the 600 electric delivery van, with ambitions to scale to 50,000 units by 2025 through phased ramp-up to two or three shifts. Actual output fell short, with over 500 units produced in the first quarter of 2023 before operations idled in May 2025 and ceased entirely in October 2025 due to insufficient market demand. Technologically, the plant incorporated advanced automation for EV assembly, including 13 autonomous guided vehicles (AGVs) for parts transport from body shop to , alongside 325 truckloads of specialized for battery-electric . A dedicated 400,000-square-foot battery module facility, operational from the second quarter of 2024, assembled platform modules by stacking cells, applying sealers, and integrating cooling systems to support Zevo production and other EVs. This setup emphasized modular construction for scalability, with processes optimized for high-voltage battery handling and propulsion system installation, though underutilization highlighted challenges in aligning capacity with real-world throughput.

Workforce and Labor Practices

The CAMI Assembly plant employs approximately 1,200 hourly workers, primarily engaged in vehicle assembly and related operations. These workers are represented by Local 88, which serves as the sole bargaining agent under collective agreements with . Labor relations at CAMI have been governed by periodic , with a notable month-long in September-October 2017 involving 2,800 workers over guarantees amid concerns of potential relocation or closure. The dispute resolved with a four-year that included job protections but no binding commitment to maintain production at the site. More recent negotiations in September 2024 resulted in a two-year tentative agreement ratified by 95.7% of members, featuring a 10% immediate wage increase and an additional 2% raise in September 2025, alongside provisions for employment equity committees. No strikes occurred in these talks, despite a 97% mandate from members. Workforce practices emphasize union-negotiated terms, including seniority-based layoffs and recalls, as seen in responses to production fluctuations. In April 2025, initiated temporary layoffs affecting most of the workforce due to slowed electric van demand, with limited operations resuming in May before further reductions; approximately 650 workers remained laid off as of September 2025, with plans for single-shift production in November. By October 2025, canceled production entirely, impacting hundreds of jobs and prompting to seek intervention for product reallocation. Collective agreements include mechanisms for employment equity, such as joint committees addressing representation, though specific programs are not publicly detailed beyond standard transformations like the 2021 Workday implementation for employee management.

Vehicles Produced

Pre-2010 Models

The CAMI Assembly plant in , initiated vehicle production in 1989 as part of the GM-Suzuki , focusing initially on Suzuki-designed subcompact cars and mini-SUVs adapted for North American markets under GM's branding. The , a three-cylinder subcompact and , was assembled from 1989 to 2001, with annual output peaking in the early 1990s before declining due to shifting consumer preferences toward larger vehicles. Similarly, the Geo Tracker (also marketed as the in some configurations), a compact two-door with optional , entered production in 1989 and continued until 1997, emphasizing affordability and off-road capability for entry-level buyers. A second-generation Tracker, based on the Suzuki Grand Vitara platform and featuring a four-door body introduced in 1999, was produced through 2004, bridging the transition from Suzuki-centric output to GM-led designs amid underutilized capacity in the late . By 2004, production shifted to the first-generation , launched on February 23, 2004, which addressed prior low volumes from Suzuki models and achieved higher demand with its unibody construction and inline-four or V6 engine options. The , a mechanically identical sibling model for Pontiac's lineup, shared the from 2005 to 2009. Suzuki's involvement persisted into the mid-2000s with the XL7 , production of which began in September 2006 for the 2007 model year and ended in 2009 due to sluggish sales, marking the venture's final joint model before Suzuki's withdrawal. These pre-2010 vehicles collectively contributed to over 2 million units assembled by January 2006, reflecting the plant's evolution from niche imports to broader crossover production amid changing market dynamics.

2010s Crossovers and SUVs

The CAMI Assembly plant shifted focus in the to producing compact crossover SUVs on , primarily the second-generation and its platform twin, the . Production of the redesigned Equinox commenced in early 2010, following a $600 million investment to retool the facility for higher-volume output amid strong initial demand that outpaced supply. The Terrain, introduced as an all-new model for the 2010 , shared the same assembly line, enabling efficient shared production of these badge-engineered vehicles with unibody construction, front-wheel or all-wheel drive options, and inline-four or configurations. By mid-2010, CAMI had ramped up to support surging sales, with combined and output reaching 152,007 units in the first eight months of the year, reflecting a recovery in North American demand post-recession. responded with multiple production boosts, including a September 2010 initiative to ship Equinox bodies from CAMI to the Assembly plant for final assembly, adding capacity without immediate line speed increases at Ingersoll. Further enhancements in 2011 involved hiring up to 100 additional workers and incrementally raising line speeds, pushing first-eight-months volume to 225,753 units—a 48 percent year-over-year increase driven by preference for fuel-efficient crossovers over traditional trucks. These models solidified CAMI's role as a key supplier for GM's crossover lineup through the decade, with the and consistently ranking among the plant's highest-volume products. Production emphasized via the CAMI Production System, incorporating principles to minimize defects and support just-in-time inventory. By 2013, ongoing investments, such as $250 million in body shop upgrades, sustained output flexibility for mid-cycle refreshes, including enhanced Terrain variants like the trim. Annual capacity at CAMI exceeded 240,000 units by the mid-2010s, though actual volumes fluctuated with market cycles and model transitions toward the third-generation in 2018. No other major crossover or SUV lines were introduced at CAMI during this period, as the facility prioritized these Theta-based staples until the pivot to electric vehicles in the early .

Electric Vehicle Line (BrightDrop)

In 2022, retooled the CAMI Assembly plant to produce electric delivery vans under its brand, marking the facility's transition to dedicated manufacturing. Retooling commenced on May 1, 2022, with the plant reopening on December 5, 2022, as Canada's first full-scale EV operation. The initial focus was on the 600, a medium-duty electric van with a gross rating of up to 11,000 pounds, a maximum of approximately 3,710 pounds, and a volume of 615 cubic feet. Production of the Zevo 600 began in December 2022, followed by the lighter-duty Zevo 400 in 2023, which offered a shorter , 412 cubic feet of , and a GVWR of 9,990 pounds. At full capacity, CAMI was projected to assemble up to 50,000 vans annually, supported by investments exceeding $2 billion in GM's Canadian operations for production. Early output included over 500 Zevo 600 units in the first quarter of 2023 alone. By September 2024, the plant was manufacturing 2025 model-year Chevrolet vans for select commercial fleets, reflecting a rebranding from the standalone division to integration under the Chevrolet name. These vans featured battery platforms with ranges up to 303 miles in standard configuration, targeted at last-mile delivery applications for customers like and . However, production faced significant challenges from weak commercial EV demand, leading to a pause in May 2025 as GM reassessed its strategy amid inventory buildup and only about 4,000 deliveries in 2025 to date. On October 21, 2025, GM announced the permanent end of BrightDrop van production at CAMI, citing slow market adoption and the loss of federal tax credits for commercial EVs. This decision idled the dedicated EV line after roughly three years, leaving the plant's future allocation under review despite ongoing GM commitments to broader EV investments in Canada.

Economic and Community Impact

Employment Trends and Job Creation

The CAMI Assembly plant in , historically employed over 2,000 workers prior to its pivot to production, with a $1 billion investment announced in January 2021 projected to provide a decade of job stability and growth. This shift, supported by Canadian government subsidies, aimed to secure thousands of roles by converting the facility into the country's first full-scale assembly site, with production ramping up for ' electric delivery vans starting in 2022. However, the transition to EV manufacturing introduced workforce disruptions, including temporary layoffs and skill mismatches, as the new processes required fewer assembly-line workers trained in battery integration and automated systems compared to traditional internal combustion engine vehicles. By early 2025, the plant's core workforce had contracted to approximately 1,300 employees, supplemented by staff at an on-site EV battery assembly operation, amid ongoing adjustments from prior years' actions. In February 2025, General Motors laid off 79 unionized workers at CAMI, described as a continuation of 2024 workforce reductions tied to production variability. Slumping demand for vans exacerbated these trends, leading to idle the plant for about five months starting in May 2025 and eliminate up to 500 jobs, citing excess inventory and market challenges rather than technological efficiencies alone. Further compounding the downturn, in 2025, GM announced the permanent end to production at CAMI, resulting in hundreds of workers—previously on and expecting recall—facing indefinite furloughs, with operations reduced to a single shift and approximately 500 union members affected. These cuts reflect broader sector dynamics, where subsidized transitions failed to sustain anticipated job gains due to insufficient uptake, contrasting initial projections of long-term employment security.

Regional Economic Contributions

The CAMI Assembly plant has served as a cornerstone of the Ingersoll economy since its establishment in , directly employing up to 3,000 workers at its peak and contributing approximately 12 percent of the town's municipal tax base as its largest property taxpayer. In recent years, prior to production idling in 2025, the facility supported around 1,200 to 1,450 hourly workers, many earning starting wages of $30 per hour and up to $52 per hour for skilled trades, bolstering local household incomes in a of about 13,500 residents. Beyond direct payroll, CAMI sustains an extensive supplier network that amplifies its regional footprint, with estimates indicating that each assembly-line position generates roughly 7.5 additional jobs in upstream and downstream sectors such as parts , linking the plant to over 20,000 total positions as of assessments around 2010. This multiplier effect extends to Oxford County and southwestern Ontario's automotive cluster, where CAMI's production of vehicles like the and later electric vans has historically funneled billions in value to domestic suppliers—approximately $2 billion annually in parts sourcing at earlier scales. More recent transitions to assembly, backed by over $2 billion in investments since 2022, positioned the facility as Canada's inaugural full-scale plant, fostering ancillary growth in clean-tech logistics and components despite subsequent market-driven contractions. CAMI's operations have reinforced County's integration into 's broader automotive ecosystem, which generates $16 billion in annual GDP and underpins nearly ,000 jobs province-wide, with the plant's role in electrifying commercial fleets enhancing export-oriented supply chains valued at $84.9 billion in 2023. By anchoring high-value manufacturing, it has historically yielded fiscal returns exceeding $4 billion for and $13 billion nationally through retained economic activity, though these benefits hinge on sustained production volumes amid volatile demand for electric models.

Government Subsidies and Incentives

The provided $259 million in April through its Strategic Innovation Fund and Net Zero Accelerator initiative to support ' approximately $2 billion investment in retooling the CAMI Assembly plant for production, including the Chevrolet delivery vans, as part of a broader effort to establish Canada's first full-scale commercial manufacturing facility at the site. The funding was conditioned on securing thousands of high-quality jobs across GM's operations, including at CAMI. The provincial government committed up to $259 million in matching funds on the same date to back the retooling project, focusing on job retention and creation, such as supporting 2,600 positions tied to GM's assembly activities. These combined incentives, totaling $518 million from federal and provincial sources, facilitated the plant's full transition to assembly starting in late 2022 and the addition of a third shift. Beyond direct funding, CAMI benefits from Canada's Automotive Products Agreement-related duty remission programs, which permit to import vehicles and parts tariff-free in exchange for maintaining domestic production and employment levels. In October 2025, following 's announcement to cease production at CAMI due to insufficient demand, the federal government reduced 's remission quota by 24% as a penalty for failing to meet output commitments. This adjustment imposes an estimated financial impact on , underscoring the performance-based nature of such incentives.

Awards and Recognition

Quality and Efficiency Honors

In 2014, CAMI Assembly received the Silver Plant Quality Award for the , recognizing the facility for achieving the second-lowest number of customer-reported defects and malfunctions per vehicle among assembly plants across North and . This accolade was based on initial quality metrics from vehicles produced at the plant, including models like the , highlighting effective first-time quality processes in assembly operations. On the efficiency front, CAMI has demonstrated strong performance in resource utilization and productivity benchmarks. In 2013, the plant earned internal recognition for advancing and conservation efforts, meeting rigorous external criteria established by the U.S. Department of Energy for automotive facilities. This involved targeted reductions in per vehicle produced, contributing to lower operational costs and environmental impact without compromising output. Industry evaluations, such as the Harbour Report, have further underscored CAMI's efficiency, with the plant ranking No. 3 in truck assembly productivity for the small category among 45 facilities in the 2005 assessment. By 2017, operational data positioned it as the top-performing plant in according to Harbour metrics on assembly hours per vehicle and overall manufacturing effectiveness. These honors reflect the CAMI Production System's emphasis on principles, enabling high throughput for crossover and models while minimizing waste.

Safety and Innovation Accolades

In 2014, CAMI received the Silver Plant Quality Award for the , recognizing its high standards in initial vehicle quality based on low defects per 100 vehicles in the first 90 days of ownership, a metric that encompasses critical to systems such as brakes and structural integrity. The plant earned similar Silver awards in subsequent years, including 2021 and 2023, where it ranked second overall in North and for production quality among evaluated facilities. For , CAMI achieved landfill-free in 2014 by diverting 100% of operational waste—approximately 1,200 metric tons annually—from landfills through , , and alternative processing, aligning with ' global target of 150 such facilities by 2020. This effort earned inclusion in TechnovA Innovation's Clean50 awards as one of Canada's top 15 leaders that year, highlighting process innovations in that reduced environmental impact without compromising operational efficiency.

Controversies and Challenges

EV Market Failures and Plant Idling

In April 2025, General Motors announced it would idle the CAMI Assembly plant in Ingersoll, Ontario, through much of the spring and summer, citing slowing demand for its all-electric BrightDrop delivery vans and high inventory levels. The decision initiated temporary layoffs affecting approximately 400 members of Unifor Local 88, with limited production resuming on a single shift in May before a further pause later that month. GM had projected annual production of up to 50,000 BrightDrop units at the facility, but actual sales fell short, with fewer than 2,000 vans delivered across the US and Canada in 2024. By October 2025, permanently discontinued production at CAMI, confirming the end of the Zevo electric van line due to persistently weak market demand. The plant, which had been idled since May, now faces indefinite downtime as assesses alternative uses for the site, impacting over 1,000 laid-off workers. This followed broader challenges in the sector, where adoption lagged behind initial forecasts amid higher costs, limitations, and from internal combustion alternatives. The idling highlighted misalignments between aggressive EV production ramps and real-world uptake, as evidenced by GM's inventory buildup and production cuts across its electric portfolio. Unifor attributed part of the shortfall to policy shifts reducing EV incentives, though GM emphasized market dynamics as the primary driver. The episode underscored risks in scaling dedicated EV facilities without corresponding demand growth, contributing to regional economic strain in Oxford County, Ontario.

Labor and Union Relations

The workforce at CAMI Assembly in , is represented by Local 88, which covers approximately 1,300 production and battery assembly employees in with . Contract negotiations have periodically involved strike mandates and temporary work stoppages. In August 2024, CAMI workers approved a strike authorization vote by 97% ahead of formal talks, reflecting concerns over wages, job security, and production volumes amid slowing demand. A tentative two-year agreement reached on September 18, 2024, included significant wage increases—up to 16% over the term for top-rate workers—and was ratified by members later that month, averting a . Historically, a 2017 at the plant, involving Unifor members, ended with a tentative deal restoring production after disruptions tied to labor demands. During the broader 2023 Unifor strike against at other Canadian facilities, CAMI Local 88 members continued operations without interruption, adhering to the union's targeted strategy focused on pattern bargaining for pattern-setting agreements on pay and benefits. have faced strain from production idling and layoffs, particularly since spring 2025, when over 1,100 workers were temporarily laid off due to halted electric van assembly amid weak market sales. has pressed and governments for commitments to retool the facility and secure new mandates, emphasizing preservation of skilled labor amid fears of permanent job losses, though the includes provisions for temporary part-time scheduling to manage fluctuating volumes.

Policy Influences on Operations

The operations of CAMI Assembly, a between and in , have been significantly shaped by Canadian federal and provincial subsidies aimed at promoting () production. In 2022, the Canadian federal and Ontario province each committed up to $259 million—totaling approximately $518 million—to support GM's $2 billion retooling of the plant for , including the addition of a third shift and production of the electric delivery vans. These funds were conditional on maintaining production commitments and job creation, enabling the facility to transition from vehicles to EVs but tying operational decisions to expectations for sustained output. U.S. policy shifts have indirectly constrained CAMI's EV-focused operations by dampening North American demand. The administration's elimination of the $7,500 federal consumer for EVs, announced as part of broader rollbacks, contributed to slowed sales of models like the , prompting to halt production at CAMI on October 20, 2025, as part of adjustments to excess EV capacity. This external policy influence exposed vulnerabilities in subsidy-dependent operations, as CAMI's output relied on integrated North American markets where U.S. incentives previously bolstered fleet purchases. In response to unmet commitments, Canadian authorities have imposed retaliatory measures affecting GM's broader operations, including those at CAMI. On , 2025, the reduced GM's tariff-free for vehicles assembled in the U.S., linking relief to verifiable investments in Canadian manufacturing and employment; this policy directly pressures GM to reassign work to facilities like CAMI or risk higher costs on imports. Premier has threatened legal action to recover subsidies, arguing GM breached contractual obligations by idling EV lines despite funding, which could influence future retooling or production mandates at the plant. These enforcement actions underscore how policy conditions on subsidies enforce operational continuity but also heighten risks amid fluctuating EV demand.

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