In a surprising turn of events, Ford Motor Company has decided to shift its production focus from all-electric vehicles to its large Super Duty trucks. This decision comes as the company announces plans to expand its production capabilities at a Canadian plant that was originally intended to be converted into an EV hub. With an investment of approximately $3 billion, Ford is set to transform its Oakville Assembly Complex in Ontario, Canada, into a Super Duty production hub.
Investment in Super Duty Production
The majority of the investment, totaling $2.3 billion, will be directed towards expanding Super Duty production at the Canadian plant. The remaining funds will go towards increasing production at supporting facilities in the United States and Canada. This strategic move is aimed at meeting the growing demand for Super Duty trucks, which play a vital role for businesses and individuals worldwide.
Electrification Plans
Despite the shift towards Super Duty production, Ford has not abandoned its plans for electrification. The company has committed to “electrifying” the next generation of Super Duty trucks, although specific details have not been disclosed. This decision aligns with Ford CEO Jim Farley’s Ford+ plan, which focuses on profitable growth and maximizing the company’s manufacturing footprint.
The decision to prioritize Super Duty production over EVs comes on the heels of Ford’s realization that full electrification of large vehicles is unlikely to be financially feasible. This is a significant departure from the initial Ford+ plan, which heavily emphasized EVs and projected nearly half of global sales to be electric by 2030. Despite the change in direction, Ford remains committed to producing a three-row EV at a different plant starting in 2027.
Ford’s new Super Duty assembly line at the Oakville Assembly Complex is expected to create approximately 1,800 jobs, securing employment for Canadian workers. This is a positive development, as it represents an increase of 400 jobs compared to what would have been required for EV production.
Ford’s decision to shift its production plans from EVs to Super Duty trucks reflects the company’s strategic adaptation to market demands. While the move may seem like a step back from the initial emphasis on electric vehicles, it underscores the importance of flexibility and responsiveness in an ever-evolving industry. Only time will tell how this shift will impact Ford’s overall profitability and competitiveness in the changing automotive landscape.