Ford Motor recently announced plans to expand production of its large Super Duty trucks to a Canadian plant, despite previous intentions of converting the plant into an all-electric vehicle hub. This shift in strategy includes a substantial investment of approximately $3 billion to expand Super Duty production, with $2.3 billion allocated to Ford’s Oakville Assembly Complex in Ontario, Canada. Additional investments will be made to increase production at supporting facilities in both the U.S. and Canada. By 2026, the Canadian plant is expected to come online and add capacity for roughly 100,000 units annually.
Ford CEO Jim Farley emphasized the importance of Super Duty trucks, stating that they are a vital tool for businesses and individuals worldwide. Despite Ford’s existing Kentucky Truck Plant and Ohio Assembly Plant operating at full capacity, they have been unable to meet the growing demand for Super Duty trucks. Farley believes that expanding production in Canada will benefit customers and enhance Ford’s commercial business. This move is in alignment with Ford’s overall strategy for profitable growth, known as the Ford+ plan.
The decision to expand Super Duty truck production in Canada comes as a departure from Ford’s previous plans to invest $1.3 billion into the Canadian plant for electric vehicle (EV) production. Ford had initially intended to produce a new three-row SUV at the plant, but that project has been delayed until 2027. This shift in focus away from EV production follows Farley’s recent comments about the challenges of making profitable electric versions of large vehicles like the Super Duty truck. While Ford has committed to “electrifying” the next generation of Super Duty trucks, specific details have not yet been disclosed.
The Ford+ plan, which was first introduced in May 2021 under Farley’s leadership, initially placed a strong emphasis on electric vehicles. However, the reality of achieving profitability in the EV market has proven more challenging than anticipated. Ford had set ambitious goals for electrification, with plans for nearly half of its global sales to be electric by 2030. Despite significant investments in EVs, including over $30 billion through 2025, the company has faced setbacks and changes in direction. Ford’s EV unit, known as “Model e,” reported losses of $4.7 billion in 2023, contrasting with the success of its Ford Pro commercial business, which includes Super Duty trucks and earned $7.2 billion before interest and taxes in the same year.
The decision to expand production of Super Duty trucks in Canada represents a strategic shift for Ford Motor, moving away from its previous focus on electric vehicles. By prioritizing the growth of its profitable commercial business, Ford aims to secure its position in the market and maximize profitability. As the automotive industry continues to evolve, Ford’s willingness to adapt to changing circumstances will be essential for its long-term success.
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