In a recent announcement, Ford Motor Co. revealed that it is delaying the commencement of electric vehicle production at its Oakville plant in Ontario by two years. Originally slated to begin in 2025, the production start has now been pushed back to 2027.
The U.S. automaker had previously outlined plans to invest $1.8 billion to transform the Oakville assembly plant into a hub for electric vehicle manufacturing, encompassing both vehicle and battery pack assembly. While the overhaul of the plant is set to commence as scheduled in the second quarter of this year, the launch of the new three-row electric vehicles manufactured at the facility will be deferred until 2027.
Ford cited the need for further development of electric vehicle battery technology and the evolving consumer market as reasons for the delay. As a result of the postponement, layoffs are expected, although some employees will remain on site during the plant transformation. The company assured that affected employees will be eligible for income security benefits based on their seniority levels.
Unifor, the union representing workers at the Oakville plant, expressed disappointment with Ford’s decision and emphasized the importance of minimizing the impact on the workforce. Unifor’s national president Lana Payne stressed the need for certainty in the company’s production plans and pledged to explore all possible avenues to support affected workers and their families.
Ford President and CEO Jim Farley affirmed the company’s commitment to manufacturing in Canada despite the delay, emphasizing the decision’s alignment with long-term business growth objectives. The Oakville site, which comprises multiple facilities including body shops and paint buildings, is set to undergo significant changes, including the establishment of a new battery plant for assembling battery packs.
The delay comes as a result of negotiations between Ford and the Canadian government, with both levels of government pledging significant funding to secure the investment. While the postponement may impact short-term operations, Ford remains steadfast in its commitment to building a profitable and sustainable business in Canada for the long term.