GM axes Chevrolet BrightDrop EV van

GENERAL MOTORS has announced the end of production for its Chevrolet BrightDrop electric van saying demand for the model was lower than anticipated.

The decision comes as the American manufacturer scales back on its EV commitments, and places uncertainty on the future of the brand’s CAMI assembly plant in Ingersoll, Ontario, which produced the BrightDrop from 2021.

“This is not a decision we made lightly because of the impact on our employees,” said General Motors chief executive officer Mary Barra.

“However, the commercial electric van market has been developing much slower than expected, and changes to the regulatory framework and fleet incentives have made the business even more challenging.

The CAMI plant has been idle since May and was originally expected to resume production this month.

GM executives said they envisioned possible commercial use cases beyond last-mile delivery for the Chevrolet BrightDrop, including for small businesses, but the product struggled to gain momentum.

Critics said the BrightDrop was too big and too expensive, and had range limitations that made it less useful than ICE-powered competitors.

“This particular van was a very niche product and to top it off, it was expensive,” said AutoForecast vice president of global forecasting Sam Fiorani.

“It’s very hard to convince a fleet to spend that much money on a vehicle that they don’t fully understand yet.

Mr Fiorani said the while the Trump administration’s tariffs did not help the model’s success, they were likely not among the main factors behind GM’s decision to end BrightDrop production.

“Its future was likely written before the tariffs started,” he said.

“Sales never picked up. Buyers never really bought into the whole idea that GM was pitching.

GM took $US1.6 billion ($A2.4b) in charges in the third quarter to a recalibration of its EV production ambitions.

Of that, $US1.2 billion ($A1.8b) in non-cash charges included decisions to cancel building electric pickups at the Orion Assembly plant in Michigan, reduce battery module assembly capacity and end work on future hydrogen cell technology, said Ms Barra.

“By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond, making us much better positioned,” she said.

GM said the CAMI plant, which built the Chevrolet Equinox until 2022, already had been operating at less than full capacity, and the market became tougher with recent regulatory changes in the US and the expiration of federal EV tax credits.

“The decision to end production of the BrightDrop electric delivery van is driven by market demand and in no way reflects the commitment and skill of our workforce at CAMI,” said GM Canada president Kristian Aquilina.

“This continues to be an uncertain time for our workforce at CAMI, and we are committed to working closely with our employees, Unifor and the Canadian and Ontario governments as we evaluate next steps for the future of CAMI.

The news is the second major blow to Canada’s automotive manufacturing industry this month, after Stellantis said it would build the Jeep Compass in Illinois rather than Brampton, Ontario.

GM said it will follow its collective bargaining agreement with Unifor and offer six months of pay to hourly employees, with other payments and benefits possible.

Mr Fiorani told Automotive News the plant could stay offline for some time, as GM awaits next year’s review of the United States-Mexico-Canada agreement that President Donald Trump signed in 2020 during his first term.

“BrightDrop was the only product CAMI had scheduled,” he said.

“Until a USMCA agreement has been signed, it’s unlikely anything else will be assigned to that plant.”