Ford to allocate $3 billion to increase the production of large trucks at a plant originally intended for EVs.

• Ford Motor will shift production of its large Super Duty trucks from an all-electric vehicle hub in Canada to a plant that was previously set to be converted into an all-electric vehicle hub.
• Ford announced plans to invest approximately $3 billion to increase Super Duty production, with $2.3 billion of that amount allocated to the Oakville Assembly Complex in Ontario, Canada.
• The Canadian plant, set to launch in 2026, will have an annual capacity of approximately 100,000 units of profitable pickups, as stated by Ford.

The Canadian plant, previously set to be an all-electric vehicle hub, will now expand production of large Super Duty trucks for DETROIT.

Ford announced plans to invest approximately $3 billion to increase Super Duty production, with $2.3 billion allocated for expansion at its Oakville Assembly Complex in Ontario, Canada, and the remaining funds used to boost production at supporting facilities in the U.S. and Canada.

In Ohio and Kentucky, Ford manufactures Super Duty trucks, which are bigger versions of the F-150 full-size pickup primarily used by commercial and business customers.

The Canadian plant, set to launch in 2026, will have an annual production capacity of approximately 100,000 units, according to Ford.

"Ford CEO Jim Farley stated in a release that Super Duty is a crucial tool for businesses and individuals worldwide, and despite our Kentucky and Ohio plants operating at full capacity, we cannot meet the demand. This decision will benefit our customers and enhance our Ford Pro commercial business."

Ford had previously announced plans to invest $1.3 billion into the Canadian plant for EV production. However, those plans have been revised and the new three-row SUV has been delayed until 2027.

Weeks after Farley stated that full electrification of large vehicles such as Ford's Super Duty trucks would not be profitable, an announcement was made.

Ford announced plans to electrify the next-generation of its Super Duty trucks, but declined to provide further details on Thursday.

The company's move supports Farley's Ford+ plan for profitable growth, which involves maximizing Ford's manufacturing footprint.

The Ford+ plan, unveiled in May 2021 during the company's first investor day under Farley, emphasized EVs.

Despite initial optimism, the widespread adoption of all-electric vehicles and their profitability have not been realized as quickly as anticipated.

Ford initially aimed to have nearly half of its global sales come from electric vehicles by 2030, with over $30 billion invested in EVs by 2025. However, it is uncertain how much money the company has spent on EVs so far. Its plans have shifted multiple times, and its "Model e" EV unit lost $4.7 billion in 2023.

The Ford+ plan initially aimed for an 8% EBIT profit margin for the EV unit by 2026, but this target was withdrawn earlier this year. This would have represented a significant improvement from the negative 40% profit margin recorded in 2022.

The new Super Duty assembly will create about 1,800 jobs in Canada at the Oakville Assembly Complex, which is 400 more than required to manufacture the three-row EV.