Ford expands large truck production to Canada | Real Time Headlines

Detroit – Ford will expand production of its large supertrucks to a Canadian plant that was previously planned to be converted into an all-electric vehicle hub.

Ford said Thursday that the new plan includes investing about $3 billion to expand Super Duty production, including a $2.3 billion investment at Ford’s Oakville Assembly Plant in Ontario, Canada. The remaining investment will be used to increase production at supporting facilities in the United States and Canada, the company said.

Ford currently produces super truck – the larger sibling of the F-150 full-size pickup used primarily by commercial and corporate customers – at plants in Ohio and Kentucky.

Ford said the Canadian plant is expected to start production in 2026 and will increase production capacity by about 100,000 vehicles per year.

“Super Duty is an important tool for businesses and people around the world, and even with our Kentucky truck plant and Ohio assembly plant running at full capacity, we can’t keep up with demand,” Ford CEO Jim Farley said in a news release. “This move benefits our customers and strengthens our Ford Pro commercial business. “

Ford has previously announced investment plans $1.3 billion invested in Canadian factory to produce electric vehicles. Those plans include a new three-row SUV, which the company recently delayed until 2027.

A few weeks ago, Farley said the full electrification of “large, very large” vehicles such as Ford’s Super Duty trucks is complete. “You’ll never make any money.”

Ford said it plans to “electrify” its next-generation Super Truck, but declined to give more details Thursday.

The company said the move supports Farley’s Ford+ profitable growth plan, which includes maximizing Ford’s manufacturing footprint.

this Ford+ plan Initially focused on electric vehicles when announced May 2021 During the company’s first investor day under Farley’s leadership, Farley October 2020.

At the time, there was great optimism about the adoption and potential profitability of all-electric vehicles not yet realized As fast as many expected.

Ford’s original plan was that by 2030, nearly half of its global sales would be electric vehicles, and by 2025, investment in electric vehicles would exceed $30 billion. The company’s plans have changed several times, and its “Model e” electric vehicle unit will lose $4.7 billion in 2023.

Although Ford’s electric vehicle division lost billions of dollars, its Ford Pro commercial business, which includes Super Duty trucks, generated $7.2 billion in EBIT in 2023.

The Ford+ plan also includes a target of 8% earnings before interest and tax (EBIT) for the electric vehicle division by the end of 2026. By 2022, this will be a huge shift, with margins around negative 40%.

Ford said the new Super Duty assembly will initially support about 1,800 Canadian jobs at the Oakville assembly plant, 400 more than initially needed to build the three-row electric vehicle.