Recent reports indicate that the Canadian automotive industry is facing challenges due to the current tariff situation created by the U. S. government. We might soon see another clear example of this.
Industry experts suggest that General Motors plans to stop producing the light-duty Chevrolet Silverado 1500 at its assembly facility in Oshawa, Ontario before 2026 wraps up. If they don’t introduce production for another model, only the heavy-duty versions of the Silverado will continue rolling out from this plant. This change would lead to a significant drop in production and employment at Oshawa Assembly.
A sharp decline in volume
As noted by Automotive News Canada, such a move by GM would significantly speed up a decrease in production that has already been happening for some time. The outlet reported that Oshawa produced 152,190 pickups in 2024 and saw a drop to 125,758 units in 2025. The plant’s output further slowed down early in 2026 when GM cut its third shift, resulting in around 700 hourly workers being laid off. Just enough to stay open
Sam Fiorani, VP of global vehicle forecasting at Auto Forecast Solutions based in Pennsylvania, estimated that completely discontinuing the Silverado 1500 could reduce the plant’s annual output to just about 50,000 heavy-duty trucks. The company’s CEO Joe Mc Cabe pointed out that focusing solely on the Silverado HD would likely require shifting from two shifts to just one shift. “It’s enough to keep the lights on,” Mc Cabe remarked, highlighting that overall demand for heavy-duty pickups remains limited. Inside GM’S Oshawa Assembly plant in Ontario | Photo: General Motors Trade issues and strategic changes
While GM hasn’t directly linked their decisions to tariffs, it’s hard not to connect their reduced operations in Canada with the tough tariff climate affecting North American auto manufacturing. Since January 2025 when the current U. S. administration came into power, American tariffs on vehicles made in Canada have hit local production hard. This trade tension has already led GM to pause operations at its CAMI Assembly plant located in Ingersoll, Ontario where Bright Drop electric van production was stopped due to low sales. At the same time, GM is rapidly expanding its presence within the United States. They announced a massive $4 billion USD investment across multiple American assembly plants and increased heavy-duty truck output at their Flint, Michigan location to operate six days a week while also expanding light-duty truck capacity in Indiana. Interestingly enough, when GM introduced their next-generation Chevrolet Silverado 1500 for model year 2027, executives broke from tradition by not naming which manufacturing plants would produce this updated pickup. Currently, light-duty models are assembled both at Oshawa as well as facilities located in Indiana and Mexico. Official denials and union worries
GM Canada is pushing back against rumors of an upcoming production cutback. Company spokesperson Jennifer Wright mentioned that they expect employment levels and shift structures will remain stable as they transition toward next-generation truck manufacturing. This change comes along with a $343 million CAD investment aimed at Oshawa which includes $63 million CAD designated for stamping major body panels. However, there’s still uncertainty regarding timelines; while this year marks the launch of next-gen Silverado 1500 models, redesigned heavy-duty variants aren’t expected until 2029. The absence of clear product confirmations has understandably raised concerns among members of Unifor Local 222 who represent over 2,000 hourly workers at this site. Local President Jeff Gray described his team as “extremely concerned” about job security during these times. Contract talks between union representatives and GM are set to kick off this summer-a process made more complicated by broader geopolitical uncertainties surrounding CUSMA (Canada-United States-Mexico Agreement). Despite stormy skies looming over Oshawa’s future plans there are glimmers of hope found across Ste-Catharines where GM has committed $691 million CAD towards its propulsion plant located there; it will produce next-generation V8 engines for their vehicles moving forward. From GM’s perspective this serves as strong evidence showing they don’t intend on fully abandoning Canadian manufacturing-at least not completely.
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As noted by Automotive News Canada, such a move by GM would significantly speed up a decrease in production that has already been happening for some time. The outlet reported that Oshawa produced 152,190 pickups in 2024 and saw a drop to 125,758 units in 2025. The plant’s output further slowed down early in 2026 when GM cut its third shift, resulting in around 700 hourly workers being laid off. Just enough to stay open
Sam Fiorani, VP of global vehicle forecasting at Auto Forecast Solutions based in Pennsylvania, estimated that completely discontinuing the Silverado 1500 could reduce the plant’s annual output to just about 50,000 heavy-duty trucks. The company’s CEO Joe Mc Cabe pointed out that focusing solely on the Silverado HD would likely require shifting from two shifts to just one shift. “It’s enough to keep the lights on,” Mc Cabe remarked, highlighting that overall demand for heavy-duty pickups remains limited. Inside GM’S Oshawa Assembly plant in Ontario | Photo: General Motors Trade issues and strategic changes
While GM hasn’t directly linked their decisions to tariffs, it’s hard not to connect their reduced operations in Canada with the tough tariff climate affecting North American auto manufacturing. Since January 2025 when the current U. S. administration came into power, American tariffs on vehicles made in Canada have hit local production hard. This trade tension has already led GM to pause operations at its CAMI Assembly plant located in Ingersoll, Ontario where Bright Drop electric van production was stopped due to low sales. At the same time, GM is rapidly expanding its presence within the United States. They announced a massive $4 billion USD investment across multiple American assembly plants and increased heavy-duty truck output at their Flint, Michigan location to operate six days a week while also expanding light-duty truck capacity in Indiana. Interestingly enough, when GM introduced their next-generation Chevrolet Silverado 1500 for model year 2027, executives broke from tradition by not naming which manufacturing plants would produce this updated pickup. Currently, light-duty models are assembled both at Oshawa as well as facilities located in Indiana and Mexico. Official denials and union worries
GM Canada is pushing back against rumors of an upcoming production cutback. Company spokesperson Jennifer Wright mentioned that they expect employment levels and shift structures will remain stable as they transition toward next-generation truck manufacturing. This change comes along with a $343 million CAD investment aimed at Oshawa which includes $63 million CAD designated for stamping major body panels. However, there’s still uncertainty regarding timelines; while this year marks the launch of next-gen Silverado 1500 models, redesigned heavy-duty variants aren’t expected until 2029. The absence of clear product confirmations has understandably raised concerns among members of Unifor Local 222 who represent over 2,000 hourly workers at this site. Local President Jeff Gray described his team as “extremely concerned” about job security during these times. Contract talks between union representatives and GM are set to kick off this summer-a process made more complicated by broader geopolitical uncertainties surrounding CUSMA (Canada-United States-Mexico Agreement). Despite stormy skies looming over Oshawa’s future plans there are glimmers of hope found across Ste-Catharines where GM has committed $691 million CAD towards its propulsion plant located there; it will produce next-generation V8 engines for their vehicles moving forward. From GM’s perspective this serves as strong evidence showing they don’t intend on fully abandoning Canadian manufacturing-at least not completely.
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