General Motors just pulled the plug on its BrightDrop electric van venture, announcing during Tuesday's earnings call that it will shut down production at its Ontario factory. The decision comes as hundreds of unsold vans pile up in dealer lots across North America, highlighting the brutal reality facing commercial EVs after federal tax credits expired. With BrightDrop vans priced at $74,000 versus Ford's $51,600 E-Transit, GM couldn't make the math work for fleet buyers.
General Motors just delivered a harsh reality check to the commercial EV market. The automaker announced it's shutting down production of its BrightDrop electric delivery vans, marking the end of what was supposed to be GM's big play for the lucrative fleet market.
The news broke during GM's third-quarter earnings call Tuesday, where CEO Mary Barra didn't mince words about the decision. "This is not a decision we made lightly because of the impact on our employees," she told analysts, according to The Verge's coverage. "However, the commercial electric van market has been developing much slower than expected, and changes to the regulatory framework and fleet incentives has made the business even more challenging."
The writing was already on the wall - literally. Earlier this year, the Detroit Free Press reported that hundreds of BrightDrop vehicles were sitting unsold in lots scattered across Michigan and Ontario. The image of rows of gleaming electric vans gathering dust became a symbol of the disconnect between EV ambitions and market reality.
BrightDrop launched in 2021 with serious momentum. GM positioned it as a comprehensive commercial EV solution, complete with delivery vans, fleet management software, and even electric cargo carts. The company secured high-profile partnerships with Walmart, FedEx, and other major retailers who seemed eager to electrify their delivery fleets.
But the business case always had a problem - price. BrightDrop vans started at $74,000, making them significantly more expensive than Ford's E-Transit van with extended range, which sold for $51,600. That $22,400 price gap was tough to justify even when federal incentives helped close the gap.
The expiration of the $7,500 federal EV tax credit on September 30th essentially delivered the final blow. Commercial buyers under 18,000 lbs had been eligible for the same $7,500 discount, making BrightDrop's premium pricing somewhat palatable. Without that cushion, fleet managers started doing the math and walking away.