Ford Motor Co. is delaying the start of electric vehicle production at its plant in Oakville, Ont., to 2027. Unsold 2024 Mustang Mach-E electric vehicles sit in a long row at a Ford dealership Sunday, Jan. 21, 2024, in Broomfield, Colo. THE CANADIAN PRESS/AP/David Zalubowski
TORONTO – Ford Motor Co. is delaying the start of electric vehicle production at its plant in Oakville, Ont., to 2027.
The U.S. automaker had planned to start production in 2025 at the Canadian plant which employs 2,700 workers.
Ford announced plans last year to spend $1.8 billion to transform its Oakville assembly plant into a hub for electric vehicle manufacturing including vehicle and battery pack assembly.
It says work to overhaul of plant will begin in the second quarter of this year as planned, but the launch of the new three-row electric vehicles to be produced at the factory won’t happen until 2027.
Ford spokesman Said Deep says some employees will remain on site during the plant transformation but there will be layoffs.
The company says it will work with Unifor, which represents workers at the plant, to mitigate the impact the delay will have on its workforce.
Ford president and CEO Jim Farley says the automaker is fully committed to manufacturing in Canada and that he believes the decision will help the company build a profitably growing business for the long term.
This report by The Canadian Press was first published April 4, 2024.
