Tariffs or slow sales? Cami-made electric vans stockpiled on U.S. lots
Cami-made cargo vans are filling parking lots in the U.S. and observers are wondering if sales are slow for the fully electric vehicles, or if GM is stockpiling to avoid looming tariffs on Canadian-made vehicles
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Cami-made cargo vans are filling parking lots in the U.S. and observers are wondering if sales are slow for the fully electric vehicles, or if GM is stockpiling to avoid looming tariffs on Canadian-made vehicles.
It may be a bit of both, said one industry leading U.S. analyst.
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Automotive media has reported hundreds of BrightDrop cargo delivery vans are stored on lots in Flint, Mich., as well as in Ontario near the Ingersoll manufacturer, with sales of the vehicle sluggish in a competitive market.
But the industry also is about to be hit on Thursday with a 25 per cent U.S. tariff on Canadian goods, so Canadian automakers benefit from getting vehicles across the border before then.
“It may be a bit of both,” Sam Fiorani, vice-president of AutoForecast Solutions in Pennsylvania, said of the slow sales versus stockpiling debate.
“GM launched a new brand (vehicle) but commercial buyers go with what they know and trust. There’s also no consumer market for it unlike other vans. It is strictly for cargo delivery,” he said of challenges facing the BrightDrop.
In fact, GM sold a little more than 1,500 BrightDrop vans in the U.S. and 232 in Canada in 2024, well off competitor Rivian selling more than 13,400 electric cargo vans that year, leading the EV cargo van sector.
“There’s a lot of competition in a market that hasn’t fully accepted electric vehicles. But I still think it could take off,” Fiorani said.
If automotive tariffs kick in on Thursday, “it will make selling an expensive vehicle even more difficult,” he said.
It may be that all automakers recently ramped up production and sent vehicles south of the border to avoid 25 per cent tariffs on vehicles and parts, said Mike Van Boekel, chairperson of Unifor Local 88 at Cami.
“We know they’re trying to get ahead of tariffs. I think everyone in Canada is trying to do that,” Van Boekel said of the glut of locally made vans in the U.S.
Cami workers have been on the job for three weeks since the last scheduled plant shutdown. But no one is certain how long they will be back to work if tariffs are implemented.
“There’s a lot of frustration and anxiety. We’re just waiting to hear,” said Van Boekel. “We will keep building until we hear differently.”
Cost is also an issue as the BrightDrop 600, with an estimated range of 437 kilometres. One costs about US$74,000. Ford’s eTransit, which has a shorter range, starts at $51,600. GM is offering up to US$31,000 in incentives. Cami also makes a smaller version of the van, the BrightDrop 400.
Cami also was believed to be in line to get another vehicle to assemble, but the tariff dispute has suspended that, although it may be resurrected if a new trade deal emerges between Canada and the U.S., Fiorani said.
“The plant is modern, GM has invested in it and even with poor sales of the BrightDrop we were expecting another vehicle for the plant before tariffs,” he said.
Recently the Detroit Free Press reported GM and Hyundai were in talks to partner on GM assembling commercial electric vans for the Korean automaker. The report stated Hyundai is considering manufacturing the vans in North America by 2028, adding production to an existing facility or contracting out the manufacturing.
There are about 1,300 workers at Cami Assembly in Ingersoll.
Electric vehicle cargo van sales U.S. 2024
- Rivian Commercial Van – 13,423
- Ford E-Transit – 12,610
- Chevrolet BrightDrop – 1,529
- Mercedes Benz Sprinter – 191
Source: InsideEVs
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