The change brings a bigger investment and more jobs
It marks a change in plan at Ford, which announced in 2020 that it would retrofit the Oakville plant to produce electric SUVs beginning in 2026, although that start date in April was later pushed back to 2027.
Under the new plan, Ford will invest more in the plant — US$2.3 billion versus its initial commitment of US$1.8 million — and only keep the plant idle for two years, rather than three. The company also said it will require 1,800 workers, which is more than previously expected.
On the other hand, it marks the second time Ford has delayed the electrified future of the plant, saying only that the plant would produce electrified Super Duty trucks “later this decade.”
Said Deep, a Ford Canada spokesperson, said the switch reflects a desire to produce a vehicle that is in high demand.
“We’re maxed out (on) Super Duty production in the U.S.,” he said, “so this is going to allow us to meet the customer demand.”
In 2020, the federal government and Ontario agreed to contribute $590 million to help Ford retrofit the plant to produce EVs.
“All I can tell you about that is we’re going to work closely with them in the coming weeks,” Deep said.
The plant had been producing the Ford Edge, a crossover SUV, but production was idled in May. Deep said workers had just begun removing equipment to clear space for the plant’s new future. It had been set to produce electric three-row SUVs, and he said production will be moved to a different location that will be announced in the future.
“We still have the three-row electric (SUV) that we’ve developed,” he said, “and we’re still excited about that and we’re going to have more plans about that later in the future. This was a good way to bring that plant back sooner and try to meet demand for a very high-in-demand product.”
“This new retooling plan for the Oakville plant addresses our union’s concerns with Ford Motor Company’s decision to delay new vehicle production for a period that was too long, too disruptive and too harmful to accept,” Unifor national president Lana Payne said in a press release.
She said the agreement would protect Unifor members’ jobs “well into the future.”