Ford Motor Co. has announced a delay in the start of electric vehicle (EV) production at its Oakville, Ont., plant, pushing the commencement from 2025 to 2027.
Originally slated to begin production next year, the U.S. automaker’s plans for the Canadian plant, which employs 2,700 workers, have been adjusted to accommodate the delayed timeline.
Last year, Ford revealed intentions to invest $1.8 billion to convert its Oakville assembly plant into a center for electric vehicle manufacturing, encompassing vehicle and battery pack assembly.
While the overhaul of the plant will commence in the second quarter of this year as scheduled, the launch of the new three-row electric vehicles planned for production at the factory has been postponed until 2027.
Ford attributes the delay to allowing the consumer market more time to mature and to facilitate further advancements in EV battery technology.
Amid the plant transformation, some employees will remain on-site, while others will face layoffs, according to Ford spokesman Said Deep. Affected employees will be eligible for income security benefits based on their seniority levels.
Ford has committed to collaborating with Unifor, representing 3,200 workers at the plant, to mitigate the impact of the delay on its workforce.
Unifor expressed disappointment over the decision, emphasizing the need for certainty in the company’s future production plans and advocating for measures to lessen the impact on workers and their families.
Ford President and CEO Jim Farley emphasized that the delay reflects a long-term strategic decision aimed at ensuring the profitability and growth of the business.
The Oakville site, comprising three body shops, one paint building, and one assembly building, will undergo significant changes, including the establishment of a new battery plant for assembling battery packs sourced from Ford’s U.S. operations.
The investment plans, initially disclosed in 2020 as part of union negotiations, were finalized with agreements between the Detroit Three automakers, the Ontario government, and the federal government. The governments pledged $295 million each in funding to secure Ford’s investment.
This report by The Canadian Press was originally published on April 4, 2024.