New strategy follows Ford’s delay of EV plant launch to 2027; electric vehicles will be produced elsewhere, while Oakville might see an electric pickup later in the decade
Ford Motor Co. shared today that it is changing its plans for producing electric vehicles at its Oakville Assembly plant in Ontario. Instead, the company will shift focus to making gasoline-powered versions of its popular F-Series Super Duty pickup trucks by 2026. Ford had initially aimed to invest $1.8 billion to upgrade the Oakville facility into a key site for manufacturing three-row electric SUVs. Earlier this year, they announced a delay in starting EV production there until 2027, which is two years later than planned. Now, they say those electric vehicles will be made at a different location that has yet to be disclosed.Electric pickup may come later
The reason behind this change is that Ford’s Ohio Assembly Plant and Kentucky Truck Plant are currently operating at full capacity and can’t keep up with the rising demand for Super Duty pickups. Unifor, the union representing workers at Ford in Oakville, welcomed today’s announcement since it means members can return to work in 2026 instead of waiting until 2027 (the plant’s current vehicle mandate ended this year). While this news benefits workers, it does set back efforts to establish Canada’s auto sector as a significant player in the move towards zero-emission vehicles. A statement from Unifor mentioned that Ford plans to eventually create an electrified version of the next-generation Super Duty pickup in Oakville – but only sometime “later in the decade.” The federal and Ontario governments had previously pledged $295 million each to support Ford’s upgrades for making EVs at the Oakville assembly plant. The future of government backing for this facility is now uncertain. Vic Fedeli, Ontario’s minister of economic development, job creation and trade, praised Ford’s announcement as a significant investment that will generate 400 net new jobs at the facility. In an interview with Global News, Fedeli defended the province’s support for Ford’s initial EV plans and other automakers’ efforts. He expressed confidence that their strategy to make Ontario a hub for electric vehicles was effective and noted that major manufacturers are still transitioning toward zero-emissions vehicles. “These companies all around the world have mandates to move into electric vehicles; the shift is happening,” Fedeli told Global. “We’re very, very confident that we’re all making the right moves.”Strategy in flux
As part of today’s announcement, Ford stated it “remains committed to developing a growing and profitable” EV business. Farley remarked: “We look forward to introducing three-row electric utility vehicles, leveraging our experience in three-row utility vehicles and our learnings to deliver fantastic, profitable vehicles.” Ford reported an impressive 86 percent increase in electric vehicle sales during Q1 of 2024; hybrid sales also rose by 42 percent compared to last year. Despite these encouraging numbers, Ford emphasizes its aim to meet current customer needs by offering “the right mix” of gas-powered cars, hybrids, and electric models. The company also mentioned it’s expanding its hybrid offerings with plans to incorporate hybrid powertrains throughout its entire Ford Blue lineup across North America by decade’s end. This past April, Ford reiterated its commitment towards advancing its EV goals by continuing design work on next-generation models. The automaker said it’s looking into creating a smaller, cost-effective platform capable of supporting various vehicle models while maintaining high production volumes. Additions are also being made at its Blue Oval Battery Park in Marshall, Mich., along with joint venture battery plants named Blue Oval SK located in Tennessee and Kentucky.Still a major investment
Though today’s announcement dims hopes for Oakville becoming a central hub for future EV production within North America for Ford, there’s still considerable investment coming along with this new plan. The company intends to invest about $3 billion into expanding Super Duty production-$2.3 billion allocated specifically towards installing assembly lines and integrated stamping operations at their Oakville facility. This new initiative is expected to create around 1,800 jobs across Canada-400 more than originally projected during EV production planning.Source link
