SW Ontario auto sector braces for possible pain as GM idles Detroit EV plant

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The Southwest Ontario automotive sector supply chain could see a ripple effect — with possibly less product sold — as GM idles its Detroit EV plant

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General Motors announced it’s temporarily idling its all-electric Factory Zero plant, placing about 1,300 workers on layoff.

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Many Michigan-area media outlets reported Wednesday that the plant’s employees were informed March 13 they would be off the job until April 13 as the automaker adjusts EV production to better match demand. 

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“Factory ZERO will temporarily adjust production to align EV production with market demand,” GM spokesperson Matthew Creegan told the Star in an emailed statement.

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“Impacted employees will be placed on a temporary layoff and may be eligible for subpay and benefits in accordance with the GM-UAW national contract.”

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The impact of the idled Detroit plant will be felt throughout the highly integrated cross-border automotive supply chain, said Sam Fiorani, AutoForecast Solutions vice-president of global vehicle forecasting.

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“The supplier group in Canada is integral to GM production, and shutting down any plant in the Detroit area is going to hamper suppliers in Michigan and in Ontario,” Fiorani told the Star Wednesday.

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He expects further such industry retrenchment as automakers pare back their investments into electrification.

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“We’ve seen a lot of announcements, and more are absolutely going to come,” said Fiorani.

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“There have always been too many electric vehicles on the market for the number of buyers looking for them, and manufacturers are still trying to figure out where that level is.”

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Other automakers have already adjusted their electrification plans as demand has not met expectations. Ford Motor Co. said it would move away from producing the all-electric F-150 Lightning in favour of an extended-range version, while Honda has cancelled multiple planned EV models in the U.S. and recently announced a significant price reduction for its Prologue.

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Fiorani said he expects Honda could ultimately scale back or reconsider that vehicle as well within the next year.

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“With the removal of incentives, there isn’t a desire for manufacturers to build electric vehicles and sell them at a price reasonable for the public,” he said.

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“We’ve already seen write-downs, and slowing down plants dedicated to EVs is just the next step.”

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Fiorani said the industry is responding to softening U.S. emissions policies and decreasing EV incentives by shifting back to more profitable, in-demand gasoline-powered vehicles. 

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This trend has also played out locally in Windsor. After initially embracing the industry’s push toward electric, Dodge scrapped plans for the entry-level 2025 Charger Daytona R/T EV slated for production at Windsor Assembly Plant due to low demand and U.S. tariffs.