Ford Fights High Labor Costs in Canada, GM Transfers Production to the US image

Ford, which is the best-selling automaker in Canada, is confident that it will be able to keep its manufacturing profile in the region despite high labor costs.

“We are optimistic despite the Canadian dollar where it is,” Dianne Craig, chief executive officer of Ford Canada, said Tuesday during the Bloomberg Canada Economic Summit in Toronto. “So it’s between the business partners that we have, certainly the government, that will enable us to at least keep the footprint that we have today.”

Ford said its Canadian workers get the highest salaries and benefits compared with the other markets. The automaker has only one plant in Canada, the Oakville facility, outside Toronto, where it plans to make a new investment.

GM said that it plans to transfer production from Canada due to the high dollar which trades at about parity with the US dollar. In December, GM said it will manufacture the next-generation Camaro sports car at its Lansing plant, in Michigan, and stop output at the Oshawa facility, in Ontario.

Ford’s plant in Oakville currently manufactures the Ford Flex, Ford Edge, Lincoln MKX and MKT. In 2011 the automaker closed its plant in St. Thomas, Ontario, which was producing the Lincoln Town Car and Ford Crown Victoria sedans.

Source: Autonews