Ford has announced a shift in its manufacturing strategy at the Oakville Assembly plant in Canada, ditching plans to build electric vehicles there in favour of gas-powered F-Series pickups.
Initially, the company planned to produce three-row electric SUVs at the plant starting in 2025. However, due to adjusting expectations for EV sales amidst declining demand, these plans have been postponed to 2027. While Ford still intends to build these EVs, the manufacturing location remains uncertain as Oakville will now focus on producing pickups.
CEO Jim Farley elaborated on the decision, emphasizing the high demand for Super Duty trucks and the company’s struggle to meet this demand with current production facilities in Kentucky and Ohio running at full capacity.
Farley stated, “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. At the same time, we look forward to introducing three-row electric utility vehicles.”
Despite this shift, Ford remains committed to introducing electric vehicles but has not yet disclosed the new manufacturing location for these EVs. This decision leverages Ford’s flexibility in adjusting production plans across various manufacturing locations.
Ford’s focus on its profitable truck segment, particularly the F-Series, which has been America’s best-selling truck for 47 consecutive years, highlights the company’s strategy. With each F-150 sold generating roughly $10,000 to $13,000 in profit, and annual sales of around 800,000 units, the F-Series contributes approximately $8 billion to Ford’s bottom line.
However, the company has faced challenges with its Model E division, handling all things EV. In 2023, Ford reduced its investment in EVs, reporting a $4.7 billion loss on the powertrain and projecting a $5.5 billion loss for the current year.
This strategic pivot underscores Ford’s reliance on its strong truck lineup to maintain profitability while navigating the evolving EV market.
