"According to GM, the reason for the shutdown is "much slower than expected" development of the commercial electric delivery van market. It also placed blame at the "changing regulatory environment" as well as the federal EV tax credit coming to an end. On Sept. 30, the $7,500 consumer EV tax credit ended along with an up to $40,000 incentive for buyers of commercial vehicles."
"There have been signs of weakness in the BrightDrop division for months. It paused production of both the BrightDrop 400 and BrightDrop 600 models back in May. At the time, it laid off 500 workers and blamed slow sales. It initially planned to reopen the factory in July, but pushed that date back until October. However, sales still didn't pick up through September, which led to an extended pause through mid-November."
"BrightDrop vans have been piling up in lots on either side of the Canadian border for months. At the end of Q3, GM recorded just 3,976 sales for the entire year60% of which were from Q3 as buyers looked to take advantage of the expiring EV tax credit. To be fair to GM, that is an uptick. In 2024, GM delivered just 1,529 BrightDrop vans. And in 2023 (when BrightDrop as a company was re-absorbed into GM), it recorded just 497 deliveries."
GM has shut down production of BrightDrop electric commercial vans at the CAMI Assembly plant in Canada, pausing since May. The automaker cited a much slower-than-expected commercial EV market, a changing regulatory environment, and the end of federal EV tax credits, including a $7,500 consumer credit and up to $40,000 commercial incentive that expired Sept. 30. Production pauses began in May with 500 layoffs and delayed restart dates from July to October and then mid-November. BrightDrop vans accumulated in lots, and annual deliveries through Q3 totaled 3,976, with 1,529 in 2024 and 497 in 2023.
Read at insideevs.com
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