General Motors (GM) is reportedly reconsidering its plan to manufacture Ultium electric drive units (EDUs) at its St. Catharines plant in Ontario, Canada. The original plan was part of GM’s strategy to increase annual electric vehicle (EV) production in North America to 1 million units by 2025.
According to a report by Canadian publication Welland Tribune, GM is reviewing the production schedule for Ultium EDUs at the St. Catharines plant. Natalie Nankil, GM’s director of corporate and internal communications in Canada, stated that the company is reassessing the timing of the move.
The St. Catharines plant currently produces the fifth-generation V8 engine and the 8-speed dual-clutch transmission for the Chevrolet Corvette C8. It used to manufacture a V6 engine and the GF6 6-speed automatic transmission, but GM is retooling the assembly lines to accommodate the Ultium EDUs. Nankil mentioned that GM is evaluating the timeline for this transition.
Jordan Lennox, President of Unifor Local 199 labor union, confirmed that GM has stopped V6 engine production and is dismantling its assembly line. The teardown process for the GF6 transmission will begin soon. However, GM has not provided any specific timeline for the start of Ultium EDU production or reasons for reconsidering the timing.
Recent reports indicate a weakening demand for EVs, leading to various measures such as heavy discounts, production cuts, and deferred new product launches. In early April, Ford announced a two-year postponement of EV production at the Oakville Assembly Plant.
When GM announced its plan to produce Ultium EDUs at the St. Catharines plant in 2023, it mentioned an investment for this purpose, potentially supporting around 500 jobs at the factory. The initial plan was to manufacture over 400,000 electric drive units annually. However, it would not be surprising if GM decides to reduce this number at the start of production, reserving the goal for a later date when EV demand rebounds strongly.
