The Ontario government says nearly $300 million in electric vehicle subsidies it offered Ford Motor Company four years ago weren’t a waste after the automaker decided to build gas-powered trucks instead, since the new factory will still bring new jobs.
The government offered the subsidies to Ford to develop an electric vehicle plant at its Oakville facility. In April 2023, Ford announced it would convert the Oakville factory to build next-generation vehicles and expected to start building electric vehicles that would go on sale in 2025. However, on July 18, Ford said it would use the Oakville location to build its F-Series Super Duty pickups instead, starting in 2026. It’s a decision that Ontario Minister of Economic Development, Job Creation, and Trade Vic Fedeli said will bring jobs to the province and does not compromise the plan to build more EVs.
“We’ve landed $43 billion worth of new EV and auto business in Ontario,” Mr. Fedeli told The Epoch Times in an interview. “The prime objective was bringing manufacturing back. This absolutely is great news from Ford Canada, because it’s adding hundreds of jobs here in Ontario.”
Ford was approved to receive a $295 million subsidy in 2020 to build electric cars at the existing Oakville plant. The minister said Ford had not yet received any of the subsidies and that the money was about bringing manufacturing back to Ontario. “Ford has not received any funding yet; it’s all based on people they hire,” he said during the interview. “The money only flows when the jobs are secured and the people are working and collecting a paycheque.”
Mr. Fedeli said Ford still plans to build what it calls “multi-energy” vehicles in Oakville which will lead to EV production at the plant.
“It paves the way for the production of what they call or what they class multi-energy vehicles. And then, of course, that allows for the full transition to the electrified space in the near future,” he said.
Ford says the Super Duty pickup is one of its most popular vehicles. “Even with our Kentucky Truck Plant and Ohio Assembly Plant running flat out, we can’t meet the demand,” Ford president and CEO Jim Farley said in a
press release.
He said the move would help the company better meet demand for the trucks, but that the company was not losing focus on its electric vehicle development.
“At the same time, we look forward to introducing three-row electric utility vehicles, leveraging our experience in three-row utility vehicles,” Mr. Farley said.
Ford’s announcement means the company is building its F-series outside of the United States for the first time, Mr. Fedeli noted.
“That’s a real acknowledgment of the end-to-end auto supply chain we’ve built in Ontario and a real nod to the world-class manufacturing talent.”
The company said it will spend $2.3 billion to install assembly and integrated stamping operations at the Oakville plant, making it a “fully flexible plant” when work is completed.
Ford says expanding production of the Super Duty truck is expected to bring 1,800 jobs to the factory, which is about 400 more than would have been needed to build EVs.
The Oakville facility is expected to produce 100,000 Super Duty trucks, Ford said.
The Associated Press, Doug Lett contributed to this article.
