General Motors (NYSE: GM) laid off more than 700 workers at its Oshawa Assembly Plant last Friday, prompting Canada’s industry minister to demand the automaker return millions in government funding.
The Detroit-based company eliminated the third shift at the Ontario facility, which builds Chevrolet Silverado pickup trucks. Union officials say the cuts will affect up to 1,200 workers when including suppliers.
Industry Minister Mélanie Joly said she met with GM representatives Thursday and told them the federal government would seek to recover taxpayer money. She said if GM reduces its Canadian footprint, Ottawa will redirect investments to other automakers.
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“We want justice for Canadian taxpayers, who have no time for those who don’t believe in us,” Joly said on Friday.
The federal and Ontario governments each committed up to 259 million Canadian dollars in 2022 to upgrade GM’s Oshawa and Ingersoll facilities. Joly said the clawback amount remains under review but will be “in the millions.”
GM announced the shift elimination in May 2025, citing demand forecasts and trade pressures. The company previously delayed the cuts from November 2025 to early 2026.
Unifor National President Lana Payne criticized GM’s decision, saying the company chose to “cave to Donald Trump rather than stand up for its loyal Canadian workforce.” US President Donald Trump imposed 25% tariffs on Canadian-built vehicles in 2025.
GM reported more than $12 billion in pre-tax earnings for 2025 and announced plans for a $6 billion share buyback program. The company is adding temporary workers at its Fort Wayne, Indiana plant, which also produces the Silverado.
The Oshawa cuts follow GM’s October 2025 closure of its CAMI Assembly Plant in Ingersoll, Ontario, which eliminated 1,200 jobs. The Canadian government reduced GM’s tariff-free import quota by 24.2% in response to the production reductions.
Workers leaving the Oshawa plant Friday face an 8.6% unemployment rate in the city, above provincial and national averages.
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