Automotive
General Motors (GM) has decided to delay its plans to provide electric vehicle (EV) motors on the St. Catharines Propulsion Plant in Canada. The precise costs for retooling the plant and the contributions from the Canadian and Ontario governments haven’t been disclosed. The St. Catharines Standard was the primary to report this development.
GM is currently reassessing its strategy for the plant, which previously employed around 1,100 employees to fabricate V-6 and V-8 engines and transmissions. Consequently of the halted V-6 engine production, roughly 300 employees have been laid off. GM has indicated that retooling efforts are ongoing to shift the production lines towards EV drive units, and the timeline for this transition remains to be being evaluated.
In February 2023, GM announced plans to start out producing Ultium electric drive units at St. Catharines, while continuing some V-8 engine production for a yet-to-be-determined period. The planned electric motors were intended to power GM’s BrightDrop electric delivery vans and electric pickups. Initially, the goal was to provide 400,000 motors annually at the power.
Nevertheless, there may be a notable decline in interest in EVs in each Canada and the USA. A J.D. Power study revealed that only a few quarter of new-vehicle shoppers in Canada would consider an EV for his or her next purchase. Within the U.S., the interest in EVs has also seen a decline for the primary time in three years.
When the EV production plans were first announced, former GM Canada President Marissa West emphasized the importance of the St. Catharines plant in GM’s objective to fabricate a million EVs in North America by 2025. Nevertheless, she mentioned that this investment trusted support agreements with the federal and Ontario governments, that are still being finalized.
The delay has caused concern amongst union members. Unifor’s Longpre noted that the corporate communicated the delay verbally, which is unusual as official announcements are typically provided in writing. The union is searching for further details and goals to handle the membership’s concerns regarding the plant’s transition and its impact on employees.
Source: Automotive News
FOLLOW US TODAY:
This Article First Appeared At www.automotiveaddicts.com
