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Ford To Start Building Electric Vehicles In Canada By 2025: WSJ

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Ford To Start Building Electric Vehicles In Canada By 2025: WSJ

Ford Motor Company (NYSE: F) plans to build electric vehicles in Canada by 2025, reports the Wall Street Journal. It is working out a tentative deal with Canada’s largest private-sector union - Unifor, backed by an investment of $1.46 billion in two plants, with partial contributions from Canada's federal government.

The three-year deal is subject to approval by the union.

What Happened: The tentative three-year agreement does not address the exact amount of the federal government's contribution in the two Ontario factories, but it covers other aspects like wages and benefits for workers, the Journal reported.

The automaker will invest in an engine plant in Windsor and an assembly factory in Oakville, to kick-off production in 2025.

Two branches of the Canadian government will collectively invest $500 million to upgrade the Oakville plant for EV manufacturing, CBC said in a separate report.

Why Does It Matter: Car manufacturing in Canada has declined over the years because of a shift to low-cost regions like Mexico and the U.S. Sunbelt, as per the Journal.

The Oakville plant had been under stress when the carmaker was planning to discontinue Ford Edge. With fresh funds infusion, the labor union could upgrade this plant to manufacture electric cars instead of the Ford Edge.

Price Movement: Ford shares traded up 1.18% in the pre-market session Wednesday at $6.85.

Photo courtesy: The Ford Motor Company

 

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