Ford Stumbles on EVs – Two Year Delays on Three-Row Entries

Ford Motor Company (NYSE: F) said today it is delaying the launch of upcoming electric vehicles at its Oakville, Ontario, assembly plant. Its all-new three-row electric vehicles due in 2025 will not appear until 2027. Employees at Oakville will be laid off. Less than one year ago Ford said it was investing C$1.8 billion in its Oakville Assembly Complex to make it into a high-volume hub of electric vehicle manufacturing in Canada. The property, renamed Oakville Electric Vehicle Complex, was supposed to retool and modernize during Q2 of 2024 to prepare for production of next-generation EVs. At the time, Ford was the first full-line automaker to announced plans to produce passenger EVs in Canada for the North American market. Oakville currently builds the Ford Edge and Lincoln Nautilus and was scheduled to build EV battery packs too. The conversion plan included large Canadian taxpayer subsidies. Ford Edge production at Oakville is scheduled to end in approximately one month. (AutoInformed on: Ford Oakville Assembly in Canada to Convert to EVs)

“Unifor is extremely disappointed by the company’s decision. Our members have done nothing but build best-in-class vehicles for Ford Motor and they deserve certainty in the company’s future production plans,” said Unifor national president Lana Payne. “I want to be very clear here. Our members can be assured that we will push the company to explore every single possible opportunity to lessen the impact of this decision on them and their families.” Given the magnitude of the delay Unifor has requested a meeting with Ford to be held as soon as possible to discuss job and income security measures for workers.” Unifor was informed of the revised timeline during a meeting with Ford executives earlier this week.

“We value our Canadian teammates and appreciate that this delay will have an impact on this excellent team,” Ford CEO Jim Farley said. “We are fully committed to manufacturing in Canada and believe this decision will help us build a profitably growing business for the long term.”

Unifor represents more than 5600 Ford Canada workers, including 3200 Local 707 members employed at the Oakville Assembly Plant. In 2023 contract negotiations with Ford, Unifor negotiated income and benefit transition supports, covering members at the Oakville plant for what was originally forecast to be an eight-month retooling period. Negotiations included a provision that should the retooling period extend beyond eight months the company and the union will meet to discuss extending this arrangement.

The latest move comes as Ford is shifting its electrification strategy once again. Now it says it is expanding its electric vehicle options to include hybrid powertrains across the entire lineup in North America by the end of the decade. Ford’s new advanced auto production complex – Tennessee Electric Vehicle Center assembly plant – is also said to be progressing on track. In addition to paint shop and vehicle assembly equipment, installation is also underway for nearly 4000 tons of stamping equipment that will produce the sheet-metal stampings for Ford’s next all-new electric truck. (AutoInformed: Ford Cuts F-150 Lightning Production. Ups Bronco and Ranger)

Ford plans to begin customer deliveries of the new truck in 2026 and gradually increase production to help assure quality. The Tennessee Electric Vehicle Center will be Ford’s first “Industry 4.0 plant,” combining automation and connectivity to help increase quality and efficiency. Ford, of course, has been plagued by quality and recall problems for years.

“There will be unexpected setbacks in the transition to EVs, but we fully expect Ford to investigate every available option to support our Oakville members. It is unacceptable, after 120 years of operation in this country, that Ford does not plan to build a single vehicle in Canada for years on end,” said Local 707 Oakville Assembly Complex Chairperson Marc Brennan. Unifor is Canada’s largest union in the private sector and represents 315,000 workers in every major area of the economy.

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