Canada Provides Ford With $350 Million for Pickup Truck Production at Ontario Plant -- 2nd Update
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Published on 05/07/2026 at 05:51 pm EDT
By Paul Vieira
OTTAWA--Canada is providing Ford Motor with nearly $350 million to refurbish the automaker's factory in suburban Toronto to accommodate the annual production of 100,000 super-duty trucks.
The financing is disclosed on a Canadian government database tracking grants and contributions, and indicates an agreement was reached in late March. Government documents indicate the money will help create about 1,800 jobs, "while complementing ongoing production at other Ford facilities" in the country.
The additional cash comes as hefty U.S. tariffs squeeze Canada's manufacturing sector, putting at risk thousands of auto-assembly and auto-parts production jobs. Vehicles assembled in Canada face a 25% levy when entering the U.S., and officials in Ottawa have tried -- but with no success -- to seek some relief from those auto tariffs.
"Obviously there's challenges with the U.S. tariffs … in the auto sector. We continue to work with companies in the sector, helping them reposition, reinvest, [and] supporting workers" in Canada, said Prime Minister Mark Carney this week, speaking about a report from Japan indicating that Honda Motor was set to cancel a planned $10 billion-plus investment in an electric-vehicle factory near Toronto.
A Honda spokesman said the company has nothing to report at this time.
Most auto-sector jobs are in the southern part of the province of Ontario, one of Canada's most populous regions and a key electoral battleground.
A spokesman for Ford said the company has invested over nearly $3 billion in Canada over the past decade. He added that reconfiguration at its factory in Oakville, Ontario, is well under way, with more details expected in the months ahead.
Representatives for Industry Minister Melanie Joly didn't return messages seeking comment.
The fresh round of taxpayer-backed financing for Ford was earlier reported by The Logic, a Canada-based online business-news outlet.
About two years ago, Ford said it would boost output of its popular F-series pickup trucks in Oakville, just west of Toronto, through an investment of $3 billion. This provided some certainty for workers at the Oakville complex, after Ford decided to shelve plans to invest over $1 billion to transform the site into a Canadian hub of EV manufacturing.
"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," said Lana Payne, national president of Unifor, the private-sector union that represents Canadian autoworkers. "The restart of production at a fully re-tooled Oakville Assembly is a needed boost to our country's industrial economy."
Meanwhile, Canada and another major automaker, Stellantis, remain in talks about resolving a dispute about the company's decision to relocate production of the Jeep Compass from a factory near Toronto to Illinois. Canada has threatened to file a lawsuit against Stellantis and General Motors to recover hundreds of millions of dollars after the companies scaled back Canadian output.
President Trump has repeatedly said he wants the big North American car companies to relocate their foreign factories to the U.S. Trump has added that the U.S. doesn't need or want cars made in Canada.
Canada is seeking relief from sector-specific tariffs, like on automobiles, as part of any deal related to the renewal of the existing U.S.-Mexico-Canada trade treaty.
Write to Paul Vieira at [email protected]
(END) Dow Jones Newswires
05-07-26 1750ET