Ford Canada to Build Electric Cars

Electric car - charging -

CBJ — Ford Canada will build electric cars at its Oakville, Ontario plant beginning in 2024.

The federal government and the Ontario provincial government have pledged to spend up to $500 million to make the transition from conventional auto manufacturing to electric. With that in place, Ford will commit to $2 billion in electric vehicle contracts. The plant will manufacture five new electric vehicles with the first being set for production within four years. An engine contract could also mean new jobs for Windsor, Ontario.

Unifor union president Jerry Dias says the deal means 3,000 Ford workers will be able to continue working and retire with a pension from Ford.

Ford Motor Co. of Detroit had already committed to spending $11 billion to develop and manufacture electric vehicles, but until today all the funding was earmarked for American and Mexican plants. Now Canada is also part of the equation moving forward.

The Oakville plant currently builds the Ford Edge and Lincoln Nautilus, but a report indicated the Edge may be phased out over the next two to three years, which left workers in Oakville concerned about whether there was going to be a future for the plant beyond the next few years or if it would suffer the same fate as the former GM plant in Oshawa.

The plant in Oakville will require a major retooling, which will cost time and money. That’s where the government’s financial commitment comes into play. It’s highly unlikely Ford would have agreed to move forward with the plan without the significant government assistance.

@CanBizJournal

 

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