GM cuts up to 1,200 Oshawa auto jobs while boosting buybacks and warning on China EVs
General Motors is cutting Canadian jobs while ramping up shareholder payouts, sharpening questions about how much manufacturing the company intends to keep in Canada.
GM is eliminating the third shift at its Oshawa Assembly Plant, costing about 500 direct GM jobs and up to 1,200 positions across the supply chain, according to CBC News.
Unifor says “more than 700” jobs will disappear inside the complex, with “hundreds” more at suppliers.
The move lands in the same week GM reported more than US$12bn in pre‑tax earnings for 2025 and outlined plans for a US$6bn share buyback and higher dividends, as per a Unifor press release.
Earlier, GM said it earned US$2.7bn in 2025, below its initial guidance of US$7.7bn to US$8.3bn, and projected US$10.3bn to US$11.7bn in net income for 2026, reported the Financial Post.
Unifor blames US trade policy and GM’s production choices.
The union says GM ramped up Chevrolet Silverado output in Fort Wayne, Indiana, after the United States imposed a 25 percent tariff on Canadian‑built vehicles, then moved to cut Oshawa’s third shift, according to CBC News.
Unifor National President Lana Payne said GM has “made a clear decision to cave to US President Donald Trump rather than stand up for its loyal Canadian workforce,” a line carried in both the union’s own statement and Reuters coverage.
GM denies the decision is tied to US tariffs or Ottawa’s China EV policy.
Spokesperson Jennifer Wright previously cited “forecasted demand and the evolving trade environment” when the shift cut was first announced and later told Reuters the change is “not linked” to US tariffs and is “unrelated” to Chinese EV import rules.
GM told CBC News it worked with the union on “comprehensive separation packages, retirement support and other benefits,” and the Financial Post reported that 200 negotiated retirements helped limit immediate GM layoffs to about 500.
The company continues to position Oshawa as a core truck hub.
The plant builds light‑ and heavy‑duty Chevrolet Silverado pickups and is GM’s only North American facility that produces both on the same line, Reuters said.
GM calls Oshawa’s future “very long runway ahead,” backed by a $280m investment to build the next generation of gas‑powered full‑size pickups, part of more than $2.6bn invested in Canadian manufacturing over the past five years.
At the policy level, both GM and Unifor are pushing back on Ottawa’s China EV opening, but from different angles.
Unifor released a video attacking the federal decision to allow up to 49,000 Chinese EVs into Canada at the 6.1 percent most‑favoured‑nation tariff rather than the previous 100 percent duty, and revived the slogan “If you sell here, build here,” reported the Financial Post.
GM’s concern is competitive.
Mary Barra told employees that allowing tens of thousands of low‑cost Chinese EVs into Canada is a “very slippery slope” and a risk to North American auto manufacturing, saying the move runs counter to building a strong continental industrial base and protecting jobs and national security, according to The Wall Street Journal.
Ottawa, meanwhile, is trying to diversify away from the United States.
The New York Times reported that Prime Minister Mark Carney’s government has agreed with South Korea to explore a Korean automotive footprint in Canada as part of a wider response to US tariffs.
Bloomberg said the two countries signed a non‑binding memorandum of understanding to cooperate on a Korean automotive industrial footprint in Canada and on domestic EV manufacturing opportunities, alongside critical minerals and clean energy.
For Ontario’s auto belt, the Oshawa cuts add to an already stressed landscape.
The Financial Post reported that Stellantis has idled its Brampton plant and halted a planned retool, keeping about 3,000 workers on layoff, while GM’s CAMI Assembly in Ingersoll lost roughly 1,200 jobs when the BrightDrop electric delivery van was cancelled and now “remains under assessment for future programs.”
Ford’s Oakville line has been idle since May 2024 as the company pivots from previously planned EV production to large pickup trucks, with no set restart date, The New York Times said.
Ontario Premier Doug Ford has responded by talking up redeployment to other sectors such as defence and life sciences and urging Ottawa to drop the EV mandate to improve competitiveness, according to CBC News.
Ontario NDP Leader Marit Stiles and Oshawa MPP Jennifer French have called for a serious auto strategy and argued that “if they’re planning to sell GM cars here, they need to build them here.”
Unifor says it will keep pressing for federal auto policy built on “Sell here, build here” and is preparing new “action centres” with retraining and job‑search support for laid‑off workers in Oshawa and other communities.
