Wednesday, September 18, 2024
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Ford to begin truck production in Oakville by 2026, EV future at plant uncertain

Ford Motor Company has announced the revitalization of its Oakville assembly plant, set to produce the popular F-series Super Duty pickup trucks starting in 2026. This decision, made a year ahead of schedule, will employ 1,800 workers and add 150 jobs at the Windsor engine plant. The announcement shifts Ford’s initial plan to produce electric SUVs at the Oakville plant by 2027, raising questions about the impact on $590 million in federal and provincial subsidies for EV production.

Kumar Galhotra, Ford’s Chief Operating Officer, stated that this investment benefits the company, its employees, and customers who rely on Super Duty trucks for their livelihoods. The change addresses Ford’s struggle to meet the high demand for Super Duty trucks, previously produced in Ohio and Kentucky.

Federal and provincial officials reacted to the announcement with cautious optimism. A spokesperson for Industry Minister Francois-Philippe Champagne indicated the government is in touch with Ford to understand the next steps. Ontario’s Economic Development Minister Vic Fedeli expressed enthusiasm, highlighting the early return of 1,800 workers and the potential for multi-energy vehicle production in the future.

Unifor national president Lana Payne welcomed the long-term stability the move brings to Oakville workers. Payne noted that the union and Ford collaborated to find a viable solution after the company’s April announcement of delaying EV production until 2027 due to softening demand.

The Super Duty trucks are Ford’s most profitable line, and shifting production to Oakville is expected to provide significant stability for the plant’s workforce. Automotive industry analyst Robert Karwel called the announcement a coup for Canadian workers, emphasizing the positive impact on local employment and the automotive sector.

The decision also prompted Ford to extend income supports for workers until production restarts. This move demonstrates Ford’s commitment to maintaining its workforce during the transition period.

Overall, the announcement represents a significant shift in Ford’s strategy, focusing on its top-selling trucks while navigating the complexities of transitioning to electric vehicle production in the future.

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