Issue: Sep 2013


Ontario, Canada Invests in Ford



$70.9 million grant to help upgrade Oakville Ontario Assembly plant

by James Hilton

Ontario is partnering with the government of Canada and Ford of Canada to upgrade the company's Oakville Assembly plant.

The Oakville plant is being upgraded with global manufacturing processes, which will make production more efficient and allow the plant to quickly switch production of models, in response to changing consumer demand. The state-of-the-art facility will be able to align capacity of any one vehicle with real demand for Ford customers in North America and all over the world. Ford will bring several new models to the plant, positioning Oakville as one of its most competitive manufacturing facilities. Work on the transformation at Oakville Assembly is already under way and is expected to be completed by fall 2014.

Global platforms are the future of modern vehicle assembly and this investment will open up new export opportunities for the plant, and for the province. It will also support auto-parts manufacturers in Ontario.

As part of the investment, Ford will also be increasing its sustainability and fuel efficiency research and development capacity in Ontario, including supporting studies in vehicle light-weighting, the reduction of stationary emissions from industrial facilities, and research into advanced engine development at Ford’s powertrain research facilities in Windsor.

This partnership is part of Ontario’s economic plan to help build a strong infrastructure and create a dynamic and innovative business climate across Canada.

QUICK FACTS

• A global platform is a common structure for the base of a vehicle, onto which a range of models can be built.
• The total anticipated project investment is more than $700 million, with Ontario providing a grant of up to $70.9 million.
• The project will anchor new R&D activities in the areas of lightweight vehicles and advanced powertrain technologies.
• Since 2004, Ontario has been the number one producer of vehicles in North America.
• With this announcement Ford has invested more than $2 billion in Ontario in less than a decade. In 2004, Ford announced a $1-billion investment for Oakville Assembly to introduce flexible manufacturing to the facility. In 2010, the company announced a $590-million investment for Essex Engine Plant in Windsor, Ontario.
• The Oakville Assembly manufactures Ford Edge, Ford Flex, Lincoln MKX and Lincoln MKT.
• Spending on Ontario-made auto parts by Ford to increase approximately $200 million a year, to a total of nearly $4 billion annually.

"We are making smart investments in innovative initiatives by companies like Ford of Canada that will help reinforce Ontario’s position as a globally competitive manufacturing destination."

— Kathleen Wynne, Premier of Ontario

"With this project, Ford’s Oakville assembly plant becomes integral to the company’s North American production plans, securing jobs directly at Ford and generating new business and new jobs for parts suppliers across Ontario. "

— Dr. Eric Hoskins, Minister of Economic Development, Trade and Employment

"Ford’s investment demonstrates Canada can be competitive in the global market through strategic partnerships. Working closely with government and labour, we have secured a bright future for our employees at Oakville Assembly."

— Dianne Craig, President and CEO, Ford Motor Company of Canada Limited

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