Ford Shifts Gears, Invests $3 Billion to Expand Super Duty Truck Production in Canada
2023 Ford Super Duty F-350 Limited
Ford
DETROIT – Ford Motor will 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. This unexpected shift signals a significant change in Ford’s strategy, moving away from the originally planned exclusive focus on electric vehicles at the Oakville plant.
**Key Takeaways:**
* Ford will invest **$3 billion** to ramp up Super Duty production, with **$2.3 billion** dedicated to its Oakville Assembly Complex in Ontario, Canada.
* The move comes after Ford CEO Jim Farley stated that **fully electric versions of large trucks like the Super Duty “are never going to make money.”**
* Ford acknowledges **strong demand** for its Super Duty trucks, leading to a decision to expand production capacity.
* The shift highlights **Ford’s evolving EV strategy**, reflecting the evolving landscape of the EV market.
* The investment will create **approximately 1,800 jobs** at the Oakville plant.
## Ford’s EV Strategy Takes a Turn
The decision to expand Super Duty truck production in Canada is a significant departure from Ford’s initial plans for the Oakville Assembly Complex. The company had previously announced a **$1.3 billion investment** to transform the plant into an EV manufacturing hub, with plans to produce a new three-row SUV. However, those plans were **later delayed until 2027**, suggesting potential challenges in achieving profitability with electric SUVs at the planned scale.
Ford’s shift toward prioritizing Super Duty trucks reflects the current realities of the EV market. While electric vehicle adoption is growing, the market for large commercial trucks is still primarily driven by **internal combustion engines**. Ford acknowledges the **strong demand** for its Super Duty trucks, which are heavily used by businesses and commercial customers, prompting the decision to expand production.
### The Future of Super Duty Electrification
Although Ford has stated that it plans to “electrify” the next generation of its Super Duty trucks, details remain elusive. The company has not yet outlined a clear timeline or specific specifications for these electric versions, leaving room for speculation among industry experts.
“Super 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’t meet the demand,” Ford CEO Jim Farley said in a release. “This move benefits our customers and supercharges our Ford Pro commercial business.”
This statement underscores Ford’s commitment to meeting the needs of its commercial customers, even as the company navigates the changing landscape of the EV market. It also highlights the critical role that **Ford Pro**, the company’s commercial vehicle division, plays in driving profitability.
### A Shift Away From Model e?
Ford’s decision to prioritize Super Duty trucks over electric SUV production at Oakville could be seen as a sign of a broader realignment of the company’s EV strategy. The company’s “Model e” EV unit reported a loss of **$4.7 billion** in 2023, highlighting the challenges associated with scaling EV production and achieving profitability in a rapidly evolving market.
Ford’s **Ford+ plan**, originally announced in 2021, placed a strong emphasis on EVs, aiming to achieve **40% electric car sales by 2030**. However, the company has since made adjustments to its EV strategy, reflecting a shift in focus towards profitable growth across various segments.
The expanded Super Duty truck production suggests that Ford is embracing a more diversified approach, acknowledging the importance of both **traditional combustion engine vehicles** and **electric options**. The company’s investment in Super Duty trucks may also indicate a belief that achieving profitability in the large commercial truck segment might be more attainable than in the passenger EV market.
### The Economic Impact of Ford’s Decision
The decision to invest in Super Duty truck production is expected to have a positive economic impact on Canada. **Approximately 1,800 jobs** will be created at the Oakville plant, providing a significant boost to the local economy. This is particularly notable as the initial EV plans for the plant projected about **1,400 jobs**.
The expanded production capacity for Super Duty trucks is also expected to have ripple effects throughout the supply chain, creating opportunities for other businesses in the region. This investment reinforces Ford’s commitment to Canada as a critical manufacturing hub.
### Conclusion
Ford’s decision to shift its production strategy at the Oakville plant signals a significant change in the company’s approach to the EV market. While the move highlights the challenges of achieving profitability in the EV market, it also reflects a commitment to meeting the needs of commercial customers who continue to rely on large trucks powered by combustion engines. The investment in Super Duty trucks is expected to create jobs and boost the Canadian economy. The future of Ford’s EV strategy remains unclear, but the company’s willingness to adapt to evolving market conditions suggests that it is prioritizing profitable growth over an unwavering focus on electrification.
