The Canadian automotive industry may face another setback in the current tariff environment, potentially impacting Oshawa in the coming months.
Following the removal of the third shift and around 700 jobs on February 1, which led to a drop of about 50,000 pickups, reports suggest that the General Motors plant might cease production of the Chevrolet Silverado 1500 by late 2026. The only model likely to remain is the Silverado HD, and probably just one shift will operate.
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This update was shared on Friday by Automotive News Canada, referencing insights from industry experts including U. S.-based consultancy Auto Forecast Solutions.
GM hasn’t announced anything yet and seems to have denied any planned production reductions in Oshawa. Interestingly, during the launch event for the 2027 Silverado 1500 on Tuesday, the company did not clarify which plants would manufacture this truck-something they usually announce with new model introductions.
Photo: General Motors
The current version of the Silverado 1500 is also produced in Indiana and Mexico.
Oshawa has been gearing up to introduce the next generation of Silverado for several months now. In fact, GM allocated $280 million for this purpose back in June 2023, followed by an additional $63 million investment in mid-February this year. Shifting some or all production away would certainly lead to financial repercussions.
Photo: Louis-Philippe Dubé
In response to these developments, Unifor informed Automotive News Canada that they have not received any official word from GM. One thing is clear: negotiations between the union and GM are likely to become quite intense this summer as they work toward a new contract-an already challenging process due to uncertainties surrounding the Canada-United States-Mexico Agreement (CUSMA).
Just remember that as recently as April, GM pledged $691 million towards improvements at the St. Catharines Propulsion plant for next-generation V8 engines like those used in the upcoming 2027 Silverado 1500. The facility will keep producing existing 5.3- and 6.2-litre V8s while getting ready for their replacements.
Watch: 2027 Chevrolet Silverado 1500 Makes Official Debut
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