DETROIT — Ford Motor Co stated Tuesday that subsequent 12 months it’ll begin retooling its sport utility automobile meeting plant in Oakville, Ontario, to provide electrical autos, fulfilling a promise made to Canada’s Unifor union throughout contract bargaining in 2020.
Ford plans to start overhauling the Oakville advanced within the second quarter of 2024, idling many of the manufacturing facility’s manufacturing employees till the brand new EV meeting system begins up in late 2024, firm officers stated Tuesday throughout a convention name.
As a part of the C$1.8 billion ($1.34 billion U.S.) overhaul, the 70-year-old advanced will get a brand new battery pack meeting operation, stated Dave Nowicki, Ford’s director of producing operations for electrical autos.
Ford officers declined to say whether or not the plant will assemble 5 EV fashions, as agreed with Unifor in the course of the 2020 contract talks.
The scale, timing and placement of electrical automobile manufacturing investments by Ford, Common Motors Co and Stellantis NV will probably be a central difficulty in contract bargaining later this 12 months with unions on either side of the U.S.-Canada border. Each Unifor and the U.S. United Auto Employees need the Detroit automakers to decide to preserving jobs as they transition from combustion to electrical autos.
The Oakville plant at present builds combustion Ford Edge and Lincoln Nautilus SUVs, that are being discontinued. The makeover of the manufacturing facility is a part of a $50 billion funding program by means of 2026. Ford Chief Government Jim Farley has stated Ford may have the flexibility to assemble 2 million EVs globally by 2026.
Ford officers stated Oakville will construct the automaker’s next-generation EVs, which Ford executives have stated should be extra environment friendly, simpler to assemble and extra aggressive with the Tesla autos that at present lead in North American market EV gross sales.
Battery cells for the Oakville-built EVs will come from a manufacturing facility Ford and battery companion SK On plan are constructing in Kentucky, Nowicki stated. It’s too early to inform whether or not the batteries will meet home content material necessities to qualify for U.S. Inflation Discount Act buy subsidies, he stated.