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New plan comes after Ford postponed EV plant launch to 2027; those EVs will now be made elsewhere, while Oakville may get an electric pickup later in the decade
Ford Motor Co. announced today it is pivoting away from its initial production plans to build electric vehicles at its Oakville Assembly plant in Ontario.
Instead, the automaker will refocus the plant to produce gasoline-powered versions of its flagship F-Series Super Duty pickup trucks by 2026.
Ford had planned to invest $1.8 billion to transform the Oakville facility into a leading hub that would manufacture three-row electric SUVs. Earlier this year, it announced it was delaying the start of EV production there until 2027, two years later than originally planned.
Now it says those EVs will be made elsewhere, with a location still to be announced.
Electric pickup may come later
Ford attributes the switch to the fact that its Ohio Assembly Plant and Kentucky Truck Plant in the United States are operating at full capacity and unable to keep up with the increasing demand for its Super Duty pickups.
Unifor, the union representing plant workers at Ford in Oakville, welcomed today’s announcement as it means its members will be able to return to work in 2026 rather than 2027 (the plant’s current vehicle mandate ended this year).
However, while it is a win for workers, it is a blow to efforts to establish Canada’s auto sector as a major player in the transition to zero-emission vehicles.
According to a statement from Unifor, Ford plans to eventually make 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 committed to investing $295 million each to help Ford upgrade its Oakville assembly plant to start making EVs. The status of government support for the Oakville plant is now unclear.
In a statement, Vic Fedeli, Ontario’s minister of economic development, job creation and trade, applauded the Ford announcement as a major investment that will bring 400 net new jobs to the facility.
In an interview published by Global News, Fedeli defended the province’s support for Ford’s original EV plans and that of other automakers, expressing his confidence that the province’s strategy to position itself as a hub for electric vehicles was working and that big automakers were still ready to move to 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 says it “remains committed to developing a growing and profitable of its EV business.”
In a statement, Farley noted: “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’s electric vehicle sales saw a significant 86 per cent increase in the first quarter of 2024, with hybrid sales also rising by 42 per cent compared to the previous year.
Despite these positive trends, Ford emphasizes its strategy to meet current customer demands by offering “the right mix” of gas, hybrid, and electric vehicles.
Notably, Ford says it is expanding its hybrid electric vehicle offerings, with plans to integrate hybrid powertrains across its entire Ford Blue lineup in North America by the end of the decade.
In April, Ford reiterated its commitment to advancing its EV initiatives by continuing its design efforts on next-generation EVs.
Ford said it is exploring the development of a smaller, cost-effective, and flexible EV platform capable of supporting multiple vehicle models at high production volumes.
Construction is also continuing to progress at its BlueOval Battery Park in Marshall, Mich., as well as at the BlueOval SK joint venture battery plants located in Tennessee and Kentucky.
Still a major investment
While today’s news dashes the vision of Oakville being a major hub for Ford’s future EV production in North America, the new investment that comes with the new plan is substantial.
Ford plans to invest around $3 billion to expand Super Duty production, including $2.3 billion to install assembly and integrated stamping operations at the Oakville assembly complex.
The new plant will create around 1,800 Canadian jobs. This will be 400 more jobs than Ford originally projected for EV production.
The post Ford scraps plans for $1.8-billion Oakville EV assembly plant, will retool to make gasoline pickups appeared first on Energy News Beat.
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