Ford to Build Electric Cars in Canada as Part of Labor Deal -- Update
22 Septiembre 2020 - 2:15PM
Noticias Dow Jones
By Paul Vieira
OTTAWA -- Ford Motor Co. of Canada has reached a tentative deal
with its 5,400 unionized employees in Canada, in a settlement that
also secures a nearly $1.5 billion investment in two plants and a
commitment to build electric cars in suburban Toronto.
The decision from the Dearborn, Mich.-based auto maker
represents a shot of confidence for Canada's auto sector. Factories
here produce roughly two million vehicles annually, but Canada has
sustained a 25% drop in production since 2000 as car makers invest
in relatively lower cost jurisdictions such as Mexico and the U.S.
Sunbelt.
The president of Unifor, Canada's largest private-sector union,
revealed the details at a press conference Tuesday. Ford's Canadian
unit issued a brief statement, saying a tentative three-year deal
is subject to ratification by union members. Until ratification,
the company said it wouldn't comment further.
Unifor president Jerry Dias said the settlement, reached early
Tuesday, covers wages and benefits, and members will vote starting
Sunday. He said the biggest accomplishment of the deal was an
investment in two Ford Motor factories -- an engine plant in
Windsor, Ontario, and a vehicle-assembly factory in Oakville,
Ontario -- of 1.95 billion Canadian dollars, the equivalent of
$1.46 billion. The plant in Oakville will be retooled to build five
models of electric vehicles, with production starting in 2025, Mr.
Dias said.
Last week, Ford said it would spend $700 million to expand its
largest and oldest factory to make electric pickup trucks in
Michigan, which is next door to Ontario, Canada's most populous
province.
Canada's Liberal administration and the government in the
province of Ontario are expected to contribute toward the
investment package, Mr. Dias said, but didn't disclose how much. An
Ontario government spokeswoman said Tuesday the province is
negotiating the terms of its contribution with Ford and the
Canadian government, and Ontario is prepared to make a sizable
contribution.
A spokesman for Canada's minister for industrial policy didn't
respond with a request for comment. On Monday, he declined to
comment on an earlier report from The Toronto Star that federal
officials were considering a C$500 million package for Ford.
Canada's government is set to make investments in
clean-technology -- such as the manufacturing of batteries required
for electric vehicles -- a component of its post-pandemic recovery
plan to be unveiled Wednesday.
Research published this year from KPMG suggested Canada was a
laggard in electric-vehicle production, accounting for just 0.4% of
global manufacturing.
Mr. Dias said the settlement, including the investment in
plants, was the result of months of talks involving Ford, Canadian
Prime Minister Justin Trudeau and the Ontario government. At the
start of talks with Ford, Mr. Dias said Unifor was concerned about
the future of the employees at the Oakville factory, because of the
company's lack of long-term commitment to build another vehicle
there beyond the Ford Edge.
"We were determined to ensure we solidified a product for our
Oakville plant. I think it is fair to say as an organization we hit
a home run," Mr. Dias said.
Mr. Dias added the agreement also secures production in Oakville
of the batteries required for the electric cars, which could add an
additional 300 jobs.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
September 22, 2020 15:00 ET (19:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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