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Ford Motor is taking a bold step by expanding production of its large Super Duty trucks to a Canadian plant that was previously set to be converted into an all-electric vehicle hub. This decision comes with a significant investment of about $3 billion to ramp up Super Duty production, with $2.3 billion allocated to Ford’s Oakville Assembly Complex in Ontario, Canada. The remaining investment will be utilized to boost production at supporting facilities in the U.S. and Canada.
The Canadian plant, expected to be operational in 2026, will add capacity of roughly 100,000 units annually. This expansion aligns with Ford CEO Jim Farley’s vision of meeting the growing demand for Super Duty trucks, which are essential tools for businesses and individuals worldwide.
While Ford had previously announced plans to invest $1.3 billion in the Canadian plant for EV production, the company recently decided to delay the introduction of a new three-row SUV until 2027. Despite this shift, Ford remains committed to electrifying the next generation of its Super Duty trucks, withholding further details at this time.
This strategic move is in line with Farley’s Ford+ blueprint for profitable growth, emphasizing the optimization of Ford’s manufacturing footprint. Although there have been adjustments to the restructuring plan involving EVs, Ford still intends to produce the three-row EV at an undisclosed plant starting in 2027.
Ford’s initial ambition to have nearly half of its global sales be electric by 2030 has faced challenges, with the EV unit reporting losses of $4.7 billion in 2023. However, the Ford Pro commercial business, which includes Super Duty trucks, managed to earn $7.2 billion before interest and taxes in the same year.
The company’s Ford+ plan aimed for an 8% earnings before interest and tax (EBIT) profit margin for the EV unit by the end of 2026, a target that was withdrawn earlier this year. Despite the uncertainties surrounding EV profitability, the new Super Duty production is set to secure approximately 1,800 Canadian jobs at the Oakville Assembly Complex.
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