Ford announced today that it is investing $1.8 billion CAD to produce “fully battery electric vehicles” in Canada.

The announcement is part of a deal between Ford and Unifor, an important general trade union in Canada, on a new national labour agreement.

The deal includes several new benefits for Ford employees in Canada:

  • Competitive alternative work schedules to maximize production flexibility
  • Enhanced temporary employee program
  • 2.5% wage increase twice over the life of the agreement
  • C$7,250 ratification bonus for full-time permanent employees and $500 for temporary employees
  • Reduced grow-in period for new hires from 11 years to eight years

But they also negotiated a deal that should help bring some job security with a new deal to “transform Ford’s Oakville Assembly Complex from an internal combustion engine (ICE) site to also become a BEV manufacturing facility.”

They plan to invest $1.8 billion CAD ($1.35 billion USD) to start producing all-electric vehicles at the factory in Ontario, Canada:

“Based on the collective agreement ratified by employees today, Ford is committing to transform its Oakville Assembly Complex from an internal combustion engine (ICE) site to also become a BEV manufacturing facility, starting in 2024, as well as introducing a new engine program at its Windsor operations.”

Dean Stoneley, president and CEO of Ford of Canada, commented on the deal:

“Working collaboratively with Unifor, and as discussions continue with both the federal and provincial governments, this agreement is an important step toward building a stronger future for our employees, our customers and our communities. By introducing battery electric vehicle production at Oakville Assembly Complex, we are cementing our Canadian operations as a leader in advanced automotive manufacturing.”

The automaker didn’t confirm which electric vehicles it plans to produce in Canada.

Ford employs 3,600 people at the Oakville plant, where it produces the Ford Edge and Lincoln Nautilus.

Until recently, it was also producing the Ford Flex (2009–2019) and the Lincoln MKT (2010–2019).

In terms of electric vehicles, Ford produces the new Mustang Mach-E in Mexico and it plans to start production of the Ford F-150 Electric in Michigan in 2022.

Last month, Ford started construction on a new factory for its electric F-150 pickup truck at its current production site in Dearborn, Michigan.

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