GM Discontinues BrightDrop Electric Delivery Vans Amid Demand Shortfall

General Motors (GM) has decided to discontinue its BrightDrop electric delivery van program due to underwhelming demand, production challenges, and the loss of U.S. electric vehicle tax credits. Launched in 2021 to capitalize on the growing e-commerce market, BrightDrop faced repeated production halts, supply chain disruptions, and market miscalculations, ultimately failing to meet sales expectations despite high-profile customers like FedEx and Verizon. The CAMI Assembly plant in Ontario, where the vans were produced, will be idled indefinitely, affecting around 1,300 union workers, with GM exploring future opportunities for the site. GM's CEO Mary Barra cited the lower-than-expected development of the commercial electric van market and changes in regulatory frameworks and fleet incentives as key factors in the decision. The move reflects a broader industry challenge as the removal of EV tax credits and rising costs have dampened demand for electric vehicles, prompting GM to recalibrate its strategy amid economic headwinds. This retreat from BrightDrop highlights the difficulties traditional automakers face in the commercial EV sector, where price sensitivity and infrastructure delays complicate growth prospects.