Canada’s federal and Ontario governments will help Ford with an investment of $135 million for the automaker’s Oakville, Ont., operations.
Ford’s only Canadian plant is located in Oakville, Ontario, and the automaker’s investment will secure 3,000 jobs in the following 10 years. The US automaker will invest between $675M and $725M to retool the plant in Oakville, which will manufacture mid-sized crossover utility vehicles for North America and other markets.
It’s been more than two years since Ford started negotiations with the two governments, regarding the future of the Oakville plant. The governments’ contribution of almost 20% of the total investment is a clear sign of the importance of the auto industry and also their struggle to keep existing plants open. Ontario is the home of all vehicle assembly factories in Canada and the place where most of the 150,000 jobs in parts manufacturing and assembly are concentrated.
This new investment will help the company to begin assembling the Lincoln MKX and the Ford Edge crossovers on a global platform, which is used for the Lincoln MKZ and the mid-sized Ford Fusion sedans. Ford will end production of the current MKX and Edge versions next year and production on the new platform will start at the beginning of 2015.