For more than a century, General Motors has been tied to Oshawa’s identity — but as layoffs loom and U.S. auto tariffs threaten the industry, the plant’s future is once again in question.
GM began Canadian operations in Oshawa in 1918, employing tens of thousands at its peak in the 1980s. Today, only about 3,000 remain, and with 2,000 workers set to be laid off when a third shift ends in early 2025, uncertainty hangs over one of Ontario’s most iconic auto hubs.
Still, there are signs of resilience. GM is investing $280 million into Oshawa to build the next generation of Chevrolet Silverado trucks, with plant upgrades underway. The facility remains the only GM plant capable of building heavy- and light-duty Silverados on the same line.
Dimitry Anastakis, a Canadian business history professor at the University of Toronto, calls the new truck mandate a “huge boost in confidence” for Oshawa’s future, even with fewer shifts. “It guarantees significant production and employment for the foreseeable future,” he said.
Decline and Debate
Oshawa’s auto workforce has fallen dramatically from 23,000 in the 1980s to just 3,000 today. Some argue the city has moved on, diversifying into health care and tech. Yet autoworkers say GM jobs remain among the few stable, well-paying manufacturing roles left.
“We make GM a lot of money,” said Jeff Gray, Unifor Local 222 president. “Our business case is great, and we’ve been proving that for decades.”
New Avenues: Defense and EVs
One potential lifeline is military contracts. GM Defense Canada already secured a $35.8 million deal in 2024 to build light tactical vehicles, though they were produced in the U.S. Oshawa Mayor Dan Carter has suggested the city could return to its WWII legacy of building defense vehicles.
Still, analysts caution that military production would be small compared to pickup truck volumes. “You’re never going to make 60,000 military vehicles a year,” said Automotive News Canada’s Greg Layson.
The bigger question is whether Oshawa can pivot to electric vehicles. Experts say EV retooling would secure long-term viability, but Trump-era U.S. policies have slowed North America’s EV transition, leaving China and Europe ahead in production and affordability. Canada’s 100% tariff on Chinese EVs complicates the picture further, balancing consumer demand for cheaper EVs against protecting local auto jobs.
A Crossroads for Oshawa
GM’s Oshawa plant embodies Canada’s industrial past, but its future could go in multiple directions: continued truck production, limited defense contracts, or a bold shift into EVs.
As federal and provincial leaders negotiate with GM, one thing is clear: Oshawa’s story is far from over. The next chapter may define not just a plant, but Canada’s role in the global auto industry.
