Ford Delays Oakville Electric Vehicle Production to 2027, Impacting Workforce

Ford Motor Co. has announced a two-year postponement for the commencement of electric vehicle (EV) production at its Oakville, Ont., facility. Initially slated for 2025, production will now kick off in 2027, affecting the 2,700-strong workforce.

The automaker’s decision comes as a setback to its plans outlined last year, wherein it pledged $1.8 billion to reconfigure the Oakville assembly plant into an EV manufacturing center, encompassing both vehicle and battery pack assembly.

Although the plant overhaul is set to commence as scheduled in the second quarter of this year, the rollout of the new three-row EVs from the factory is deferred to 2027. Ford justifies the delay as a strategic move, affording more time for consumer market maturation and the advancement of EV battery technology.

Amidst the transformation, some employees will remain on-site, albeit with looming layoffs, according to Ford spokesman Said Deep. The affected employees will receive income security benefits based on seniority levels. Ford assures its collaboration with Unifor, representing 3,200 plant workers, to mitigate workforce impacts caused by the delay.

Expressing disappointment, Unifor emphasizes the necessity for Ford to explore all avenues to alleviate the repercussions of the “substantial delay” on workers. Lana Payne, Unifor’s national president, stresses the importance of certainty in Ford’s production plans for its dedicated workforce.

Ford’s President and CEO, Jim Farley, labels the delay as a strategic decision, emphasizing the company’s commitment to the Canadian manufacturing landscape. The Oakville site, comprising three body shops, a paint building, and an assembly building, is integral to Ford’s plans. It will include a new battery plant where workers will assemble parts sourced from Ford’s U.S. operations into battery packs for on-site installation.

The investment pledges, initiated in 2020 during union negotiations, underscore the significance of long-term production commitments. As part of the deal, the Ontario and federal governments agreed to provide $295 million each in funding to secure Ford’s investment, reinforcing the automaker’s commitment to Canadian operations.