Canada has confirmed a massive new funding package for Ford’s Oakville Assembly Complex — this time focused on gasoline and diesel trucks instead of electric vehicles (EVs).
According to Innovation, Science and Economic Development Canada, the federal government is providing Ford with $464.5 million to help refit the Ontario plant for production of F-Series Super Duty trucks. The facility, which has been shut down since 2024 for retooling, is expected to reopen later this year with plans to build up to 100,000 heavy-duty trucks annually. (via The Logic)
The investment marks a dramatic shift from Ford’s original plan for the site. Oakville had previously been positioned as a cornerstone of Canada’s EV manufacturing strategy, with Ford announcing a $1.8 billion overhaul in 2020 to produce next-generation electric SUVs.
At the time, both Ottawa and Ontario pledged $295 million each to support the transition. However, weakening EV demand and mounting losses in Ford’s electric vehicle division forced the automaker to rethink its strategy.
Ford pivots back to profitable trucks
Instead of producing three-row electric SUVs, Oakville employees will now assemble Super Duty models including the F-250, F-350, and F-450. Ford says demand for the trucks remains so strong that its existing plants in Kentucky and Ohio cannot keep up.
Ford has already started early production at the facility, with the company confirming its first six Super Duty trucks rolled off the Oakville line in April. The automaker now says its total investment tied to Canadian Super Duty production will approach $5 billion.
The project is also expected to include a new metal stamping facility by 2029 and create approximately 1,800 jobs when the plant is fully operational.
Canada’s EV strategy faces mounting pressure
The Oakville reversal comes at a difficult time for Canada’s automotive sector. Several automakers have recently scaled back EV-related investments across Ontario amid slowing consumer demand and growing uncertainty tied to U.S. tariffs.
General Motors has reduced truck production in Oshawa, Stellantis has delayed plans in Brampton, and reports this week suggested Honda may cancel its massive $15 billion EV project in Ontario.
Even with the latest pivot, Ford insists Oakville could still eventually build electric vehicles. The company has said the upgraded facility is being designed with “future multi-energy technology” in mind, potentially leaving the door open for EV production later this decade.
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