DETROIT \u2014\u00a0Ford Motor\u00a0will expand production of its large Super Duty trucks to a Canadian plant that was previously set to be converted into an all-electric vehicle hub.<\/p>\n
The new plans include investing about $3 billion to expand Super Duty production, including $2.3 billion at Ford\u2019s Oakville Assembly Complex in Ontario, Canada, Ford said Thursday. The remaining investment will be used to increase production at supporting facilities in the U.S. and Canada, the company said.<\/p>\n
Ford currently produces\u00a0Super Duty trucks\u00a0\u2014 the larger siblings of the F-150 full-size pickup used largely by commercial and business customers \u2014 at plants in Ohio and Kentucky.<\/p>\n
Ford said the Canadian plant, which is expected to come online in 2026, will add capacity of roughly 100,000 units annually.<\/p>\n
\u201cSuper Duty is a vital tool for businesses and people around the world and, even with our Kentucky Truck Plant and Ohio Assembly Plant running flat out, we can\u2019t meet the demand,\u201d Ford CEO Jim Farley said in a release. \u201cThis move benefits our customers and supercharges our Ford Pro commercial business.\u201d<\/p>\n
Ford had previously announced plans to invest\u00a0$1.3 billion into the Canadian plant for EV production. Those plans included a new three-row SUV, which the company recently delayed until 2027.<\/p>\n
The announcement comes weeks after Farley said full electrification of \u201cbig, huge, enormous\u201d vehicles such as Ford\u2019s Super Duty trucks was\u00a0\u201cnever going to make money.\u201d<\/p>\n
Ford said it has plans to \u201celectrify\u201d the next generation of its Super Duty trucks, however it declined Thursday to disclose additional details.<\/p>\n
The company said the move supports Farley\u2019s Ford+ blueprint for profitable growth, including maximizing Ford\u2019s manufacturing footprint. It\u2019s the\u00a0latest pullback\u00a0for the restructuring plan involving EVs, however the automaker said it still plans to produce the three-row EV at an unspecified plant, starting in 2027.<\/p>\n
The\u00a0Ford+ plan\u00a0initially focused heavily on EVs when it was announced\u00a0in May 2021\u00a0during the company\u2019s first investor day under Farley, who took over the helm of the automaker in\u00a0October 2020.<\/p>\n
At the time, there was significant optimism around all-electric vehicle adoption and potential profitability\u00a0that have not materialized\u00a0as quickly as many had expected.<\/p>\n
Ford\u2019s initial plan called for almost half of its global sales to be electric by 2030, fueled by more than $30 billion in investments in EVs through 2025. It\u2019s unclear how much capital the company has spent on EVs to date. Its plans have changed several times, and its \u201cModel e\u201d EV unit lost $4.7 billion in 2023.<\/p>\n
While Ford\u2019s EV unit loses billions of dollars, its Ford Pro commercial business including its Super Duty trucks earned $7.2 billion before interest and taxes in 2023.<\/p>\n
The Ford+ plan also included a target of 8% earnings before interest and tax, or EBIT, profit margin for the EV unit by the end of 2026. Ford withdrew that target earlier this year. It would have been a massive turnaround from a profit margin of roughly negative 40% in 2022.<\/p>\n
Ford said the new Super Duty production will initially secure approximately 1,800 Canadian jobs at the Oakville Assembly Complex, 400 more than would initially have been needed to produce the three-row EV.<\/p>\n<\/p>\n
DETROIT \u2014\u00a0Ford Motor\u00a0will expand production of its large Super Duty trucks to a Canadian plant that was previously set to be converted into an all-electric vehicle hub. The new plans include investing about $3 billion to expand Super Duty production, including $2.3 billion at Ford\u2019s Oakville Assembly Complex in Ontario, Canada, Ford said Thursday. The […]<\/p>\n","protected":false},"author":0,"featured_media":6322,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-6321","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/6321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=6321"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/6321\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/6322"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=6321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=6321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=6321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}