Ford Motor Co. (F) has announced that it will spend $3 billion U.S. to expand production of Super Duty pick-up trucks at its main Canadian plant in Oakville, Ontario.
Previously, Ford had planned to convert the Oakville plant so that it could make fully electric vehicles for the Detroit-based automaker.
Specifically, $2.3 billion U.S. will be directly invested in the Oakville Assembly Complex outside of Toronto. The remaining $700 million U.S. will be invested to increase production at supporting parts facilities in Canada and America, said the company in a news release.
Ford currently produces most of its Super Duty pick-up trucks that are mainly used by commercial and business customers at manufacturing plants in Ohio and Kentucky.
The investment by Ford represents a huge boost to the company’s Canadian plant and the community of Oakville, which has seen automotive production decline in recent years.
Ford said the new Super Duty assembly plant will create 1,800 net new Canadian jobs in Oakville, 400 more than would have been needed to produce electric vehicles at the facility.
Ford said the revamped Oakville manufacturing plant is scheduled to come online in 2026 and will produce about 100,000 Super Duty trucks a year.
Ford had previously announced plans to invest $1.3 billion U.S. into its main Canadian plant to produce fully electric vehicles.
The Canadian electric vehicle plans included a three-row SUV, which Ford has now delayed until 2027.
Ford and other automakers are pivoting away from fully electric vehicles amid waning consumer interest and slowing sales.
Analysts say that electric vehicles have failed to deliver on their initial promise and that consumers have grown weary of limited battery life, high costs, and a lack of infrastructure, i.e. public charging stations, to support electric vehicles.
Ford chief executive officer (CEO) Jim Farley recently said that the company’s initial electrification plans were “never going to make money.”
Ford’s initial plan had called for almost half of its global sales to be electric by 2030. Like competing automakers, Ford is now moving to focus more on gas-electric hybrid vehicles that remain popular with consumers.
The stock of Ford Motor Co. has gained 2% in the past 12 months and currently trades at $14.48 U.S. per share.
Related Stories
