Ford's Shift in Production: From Electric to Gas-Powered Trucks
Ford Motor Company, an American multinational automaker, has announced a significant change in its production plans. Instead of producing electric vehicles (EVs) at its Oakville Assembly Complex in Ontario, Canada as previously planned, the company will now focus on manufacturing large gas-powered Super Duty trucks.
The shift comes as a result of increased consumer demand for these types of trucks and concerns over the cost of EVs. Ford's decision to repurpose its Oakville plant is expected to create jobs and add production capacity, with an investment of approximately $3 billion.
Ford currently produces Super Duty trucks at plants in Ohio and Kentucky. The Canadian plant, which was previously set for all-electric vehicle production, is now expected to come online in 2026 and will add a capacity of roughly 100,000 units annually.
The investment includes $2.3 billion allocated for Ford's Oakville Assembly Complex in Ontario. The remaining investment will be used to increase production at supporting facilities in the U.S. and Canada.
Ford CEO Jim Farley stated that this move benefits customers and supercharges the Ford Pro commercial business.
The shift towards gas-powered trucks is a response to changing consumer preferences, as some Canadians have expressed concerns over the cost of electric vehicles and charging hassles on long trips. This decision may also be influenced by the overall demand for Super Duty trucks, which are popular among businesses and commercial customers.
Ford's investment in Super Duty truck production is expected to create jobs for approximately 20,000 American workers across five states. The company plans to invest $24 million into its Sharonville, Ohio plant and add jobs to Sterling Axle Plant in Michigan for Super Duty Production.
The Oakville complex will produce both gas-powered and electric Super Duty trucks later in the decade.
This change in production plans marks a departure from Ford's earlier focus on electric vehicles. However, it underscores the importance of meeting consumer demand and adapting to changing market conditions.