The announcement didn’t exactly send shockwaves through Oshawa’s automotive community, but it still stung. General Motors Canada confirmed plans to eliminate the third shift at its Oshawa Assembly Plant, a move that will affect approximately a thousand workers when implemented later this year.
For a city that has ridden the automotive industry’s roller coaster for generations, this represents another downward turn, though not nearly as severe as the near-death experience the plant faced just five years ago.
“We knew something might be coming with inventories building up, but you’re never really prepared for the news,” said Jason Campbell, a second-shift worker who has survived three previous restructurings at the plant. “Everyone’s first question is always the same – am I on the list?”
According to Unifor Local 222, which represents workers at the facility, GM cited declining demand for full-size pickup trucks as the primary reason for the decision. The Oshawa plant currently produces Chevrolet Silverado and GMC Sierra models after a $1.3 billion retooling investment that breathed new life into the facility in 2021.
GM’s cutback decision appears tied to broader economic trends affecting North American auto sales. Higher interest rates have cooled consumer appetite for large vehicles, while persistent inflation has pushed many potential buyers toward used vehicles or delayed purchases altogether. Industry analysts note that dealer lots across North America are showing growing inventory levels for full-size trucks—a stark contrast to the supply shortages that defined the post-pandemic market.
“The truck segment remains profitable but we’re seeing normalization after years of unprecedented demand,” explains Flavio Volpe, president of the Automotive Parts Manufacturers’ Association. “Companies are recalibrating production to match current consumption patterns, and unfortunately, that means workforce adjustments.”
What makes this cut particularly complex is its timing. It comes just as Canada’s automotive sector had been celebrating a resurgence of investment, with major announcements around electric vehicle production and battery manufacturing in Ontario. The federal and provincial governments have positioned Canada as an emerging EV powerhouse through aggressive incentive packages and industrial strategy.
For workers facing layoffs, the broader industry transformation offers little immediate comfort. Unifor representatives indicate the cuts will likely follow seniority protocols established in their collective agreement, meaning newer hires face greater risk. The union plans to negotiate transition supports and explore options for affected members.
“We’ve built in protections through past negotiations, but this is still a significant disruption for our members and the community,” said a Unifor spokesperson. “Our focus now is minimizing the impact and ensuring those affected have support and pathways to either return when volumes recover or transition to other opportunities.”
The economic ripple effects extend beyond the assembly line. Each automotive assembly job typically supports about seven additional positions throughout the supply chain, according to research from the Center for Automotive Research. For Oshawa and surrounding Durham Region communities, that multiplier effect works in both directions.
Local business owners express concern but not panic. “We’ve been through worse with GM,” noted Maria Kotsiopoulos, who operates a family restaurant near the plant. “At least the facility is still operating. Five years ago we thought it might be gone completely.”
Indeed, the plant’s recent history provides important context. GM had announced the complete closure of Oshawa Assembly in 2018, only to reverse course after intensive negotiations with Unifor and government intervention. The current production of trucks represented a compromise solution that kept the facility open, albeit with a smaller workforce than its historical peak.
Automotive manufacturing remains cyclical by nature, subject to consumer preferences, economic conditions, and technological shifts. What’s different about this cycle is the industry’s simultaneous navigation of electrification, which requires substantial capital investment while traditional revenue streams remain vital.
For policymakers, GM’s decision raises questions about the effectiveness of recent automotive sector strategies. Federal Industry Minister François-Philippe Champagne has emphasized Canada’s commitment to becoming an electric vehicle manufacturing hub, but the transition presents complex challenges for communities like Oshawa with deep ties to conventional auto manufacturing.
Statistics Canada data shows the automotive manufacturing workforce has decline
