The governments of Ontario and Canada have revealed their plan to invest $295 million each, totaling $590 million, to help Ford modernize its assembly plant in Oakville for electric vehicle production.
This financial support isn’t new; it was part of last month’s $1.8-billion agreement between Ford and Unifor, its largest union, which includes plans to produce five new electric car models at the facility.
Ford has already put 800,000 electric cars on the road globally over recent years but is now increasing its electric vehicle production as it anticipates these vehicles will outnumber fossil fuel-powered ones within the next decade. The enhancements at the Oakville plant will make it Ford’s top electric vehicle factory in North America.
Earlier reports suggested that the government funding would be around $500 million. On Thursday, both levels of government clarified that they are each committing $295 million for a combined total of $590 million.
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A worker works on a Ford Edge at the Oakville, Ont., assembly plant, which will soon be retooled to start making as many as five new types of electric cars. (Chris Young/Canadian Press)
“By making this investment in Ford Canada, we are ensuring our province continues to lead North America and the world in automotive manufacturing and innovation while boosting our competitiveness in this key sector,” Ontario Premier Doug Ford said. “We are also securing thousands of good-paying jobs, not just at the facility in Oakville but across the province. This project will help support our auto parts sector and other suppliers and service providers.”
The Oakville plant currently employs about 3,400 workers. In a release, the federal government states that this plan will secure 5,400 jobs throughout Ford’s Canadian workforce and supply chain.
This federal funding is in addition to previous commitments exceeding $300 million aimed at establishing a network of fast-charging stations for electric vehicles across Canada.
Moreover, Ottawa has provided $239 million so far to more than 56,000 Canadians who have purchased an electric vehicle-an average grant of over $4,000 each.
“This is a win-win,” Prime Minister Justin Trudeau said at a news event in Kanata, Ont., which was linked by video with Ford and other dignitaries on-site in Oakville. “Today’s announcement is a testament to Canada’s attractiveness as a destination for clean technology, talent and infrastructure in the automotive industry. Companies like Ford are helping accelerate our transition to a low-carbon clean-growth economy which will help protect our environment drive innovation and create many good middle-class jobs.”
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