Ford Expands Super Duty Truck Production to Canadian Plant

Ford Expands Super Duty Truck Production to Canadian Plant | Enterprise Wired

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Source-Detroitnews.com

Investment and Expansion Plans

Ford Motor Company has announced a major expansion in the production of its large Super Duty trucks, with plans to invest around $3 billion. This investment includes $2.3 billion dedicated to enhancing the Oakville Assembly Complex in Ontario, Canada. The remaining funds will be allocated to supporting facilities in both the U.S. and Canada. This strategic move aims to meet the high demand for Super Duty trucks, which are primarily used by commercial and business customers.

Addressing High Demand

Currently, Ford manufactures Super Duty trucks at plants in Ohio and Kentucky. However, the company has been unable to keep up with the increasing demand. By adding production capacity at the Canadian plant, which is set to become operational in 2026, Ford expects to produce an additional 100,000 units annually. Ford CEO Jim Farley highlighted the significance of this expansion, stating, “Super Duty is a vital tool for businesses and people around the world and, even with our Kentucky Truck Plant and Ohio Assembly Plant running flat out, we can’t meet the demand. This move benefits our customers and supercharges our Ford Pro commercial business.”

Shift from EV Production

Initially, Ford had planned to convert the Oakville plant into an all-electric vehicle (EV) hub with a $1.3 billion investment. These plans included producing a new three-row SUV, which has now been delayed until 2027. This shift comes after Farley remarked that full electrification of large vehicles like Super Duty trucks would not be profitable. Despite this, Ford still intends to “electrify” the next generation of Super Duty trucks, although specific details remain undisclosed.

Ford Expands Production of F-series Pickups to Oakville

Ford+ Blueprint for Growth

This expansion aligns with Farley’s Ford+ blueprint for profitable growth, which emphasizes maximizing the company’s manufacturing footprint. The Ford+ plan, unveiled during the company’s first investor day under Farley in May 2021, initially focused heavily on EVs. At that time, there was significant optimism about the adoption and profitability of all-electric vehicles. Ford’s initial goal was for almost half of its global sales to be electric by 2030, supported by more than $30 billion in EV investments through 2025. However, the anticipated rapid adoption of EVs has not materialized as expected.

Current Financial Landscape

Ford’s EV unit, “Model e,” reported a loss of $4.7 billion in 2023, contrasting sharply with the $7.2 billion earned by its Ford Pro commercial business, which includes Super Duty trucks. The Ford+ plan also set an ambitious target for the EV unit to achieve an 8% earnings before interest and tax (EBIT) profit margin by the end of 2026. However, this target was withdrawn earlier this year due to the significant losses incurred by the EV unit.

Job Creation and Future Prospects

The new Super Duty production at the Oakville Assembly Complex will initially secure approximately 1,800 Canadian jobs, 400 more than would have been needed for the three-row EV production. This expansion not only addresses the high demand for Super Duty trucks but also supports job growth in the region, reinforcing Ford’s commitment to its profitable growth strategy.

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