The federal government is giving Ford Motor Co. $464.5 million toward retooling its idled Oakville assembly plant to produce heavy-duty F-series gas and diesel-powered trucks.
The funding — mentioned in a federal database for grants and contributions — comes as the Dearborn, Mich.-based auto manufacturer revealed it has increased its own spending on the retooling to $5 billion from $1.8 billion.
The database says the funding agreement, which took effect March 30, runs until 2038.
“This project will refurbish Ford’s Oakville Assembly Complex (OAC) in Ontario to support the production of the F-series Super Duty truck and establish a new on-site stamping facility for Super Duty vehicles,” the database reads.
Ford spokesperson Rosemarie Pao said the company is committed to Canadian manufacturing.
“We have invested more than $4 billion in our Canadian operations over the past decade, not including our current Super Duty investment that will add nearly $5 billion more,” said Pao. “We’ve been a major part of Canada’s industrial landscape for nearly 122 years — investing in our facilities, supporting our workers and building for the long term.”
The plant has been idle for roughly two years during the retooling, and is expected to restart production this fall.
The federal government had originally agreed in 2020 to give Ford $295 million to retool the plant to make electric vehicles, but that money never flowed to the company as it instead decided in 2024 it would produce gas and diesel-powered F-series trucks at the plant.
The Ontario government had originally agreed to match the $295 million in federal funding. The office of provincial Economic Development Minister Vic Fedeli didn’t immediately reply to a request for comment on whether it would be matching the new federal amount.
The increased budget for the retooling — and the federal funding — are a rare piece of good news for the Canadian automotive sector, which has come under heavy pressure from U.S. President Donald Trump’s tariffs. Canada is also facing a review of the Canada-U.S.-Mexico Agreement (CUSMA) on trade, an agreement which Trump has repeatedly questioned the need for.
In an emailed statement, Unifor national president Lana Payne praised the company for continuing to invest in Canada.
“Amid the turmoil facing Canada’s autoworkers, the restart of production at a fully retooled Oakville Assembly is a needed boost to our country’s industrial economy,” Payne said. “Despite a targeted attack on Canada’s auto sector, Ford is delivering on the commitment made to the union, its members, and the community of Oakville.”
After the company bailed on EV plans for the Oakville plant, the union pushed Ford to find an alternative product to produce there.
Oakville Mayor Rob Burton was also happy with the company’s — and federal government’s — increased financial commitment.
“I’m happy and impressed that Ford decided to spend $5 billion instead of $1.8 billion to give new life to the assembly plant and keep jobs here,” said Burton. “I like their business strategy to base the comeback of this assembly plant on the Super Duty model’s worldwide demand, with future opportunities for multi-energy vehicles.”
Trump — and his commerce secretary Howard Lutnick — have repeatedly said they aim to bring automotive production jobs back to the U.S.
In October, Lutnick bluntly told an audience at a Canada-U.S. conference that the U.S. is determined to dominate the automaking industry, and while Canada can benefit from its proximity to the U.S. and find itself in an “excellent” place, trade between the two countries is never going back to the way it used to be under three decades of free-trade agreements.
According to five sources who were in the room for the discussion, which was held under the “Chatham House Rule” that bars reporters and media coverage, Lutnick said Canada should acknowledge and understand that “America is first, and Canada can be second,” Lutnick said.
But Ottawa should leverage Canada’s geographical proximity to the U.S., he said.
“Car assembly is going to be in America and there is nothing Canada can do about it. The question is, what is Canada going to do instead?” one source quoted Lutnick as saying.
The head of Canada’s Automotive Parts Manufacturers’ Association said the federal funding and Ford’s financial commitment are good signs.
“It’s great to see Ford firmly committed to Canada when it would have been easier to abandon its post,” said APMA CEO Flavio Volpe. “That the federal government continues to invest in automotive production going into the CUSMA review is a clear indication of the posture it’s taking in upcoming talks.”
With files from Tonda MacCharles and Robert Benzie
