Canada injects $464M into Ford Oakville Assembly Complex for diesel trucks

The Ford assembly plant in Oakville recently received a huge cash injection from the federal government totalling over $464 million.

First it ended the production of its Ford Edge models, laying off thousands of workers.

Then, it received federal and provincial funding to retool for EV production, but that too is no more.

The Ford Oakville assembly plant will now produce gas and diesel F-Series Super Duty trucks, with a $464.5 million backing from the federal government.

“I understand why they did it and frankly I understand why and how the Government of Canada was bent over a barrel and felt obliged to respond,” said Greig Mordue, the program lead of Engineering and Public Policy at McMaster University.

Mordue says Canada’s auto industry has been on a steady decline in the 21st century as its assembly footprint on the continent took a hit after the North American Free Trade Agreement increased access to Mexico’s affordable labour.

“Auto production in Canada, even before the Trump administration, was on a downward spiral,” said Mordue.

The tariffs and U.S. President Donald Trump’s threats certainly don’t help.

“…and the Government of Canada is trying to maintain whatever they can of a difficult, challenged industry at an even more difficult and challenging time,” said Mordue.

READ MORE: Ford Motor Co. delays start of EV production at Oakville plant until 2027

Last month, the federal government said it’s going to contribute more than $460 million to the Ford plant in Oakville, saying the investment will “refurbish Ford’s Oakville Assembly Complex to support the annual production of up to 100,000 units and create approximately 1,800 jobs at the complex.”

Prior to the shutdown, the complex was producing 250,000 units with over 3,000 employees.

“It takes a certain amount of temerity to negotiate with the Government of Canada for incentives of that volume, when the end result is not as positive as where you started from,” said Mordue.

In a statement to CHCH News, Ford of Canada said it’s invested nearly CAD 5 billion into the retooling to date and that the automaker has been a major part of Canada’s industrial landscape for nearly 122 years — investing in its facilities, supporting its workers and building for the long term.

Ford’s commitment to Canada is something Unifor is also taking note of.

The union represents approximately 5,000 workers at various Ford facilities across Canada including Oakville.

It will be at the table this month for talks with the “Detroit Three:” Ford, Stellantis, and General Motors.

“While the auto industry keeps shifting and changing around us, Ford is maintaining its footprint in Canada, including the Windsor Engine Plant, Essex Engine Plant, and the retooling of the Oakville Assembly Plant,” said Lana Payne, the National President of Unifor.

Unifor says it will kickstart what it’s calling “one of the most consequential rounds of auto negotiations it has faced” with Ford to “set the strongest possible pattern — in the proceeding talks with the other two members of Detroit Three.”

It says the move to land a new collective agreement is particularly significant with the upcoming relaunch of the Oakville Assembly Plant and the Canada-U.S.-Mexico Agreement renegotiations.

WATCH MORE: Ford expands production of F-Series pickups to Oakville