Ford considers expanding output at Oakville plant

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Friday, July 15, 2011 at 02:39PM

Ford Edge in assembly at Oakville plant

Following an announcement earlier this month that Ottawa and Ontario have each pledged to invest C$70.8 million to upgrade Toyota Motor Corp. assembly plants in southern Ontario, Ford Motor is considering retooling its assembly plant in Oakville to expand output. Ford has discussed the project with the governments of Canada and Ontario but says it has not made a formal request for financial support.

According to Ford CEO David Mondragon, meetings with the government of Ontario are ongoing and regular. They have discussed Ford's desire to assemble other vehicles in Canada that it can sell internationally. Currently the Oakville plant produces the Ford Edge and Lincoln MKX. The company would like to broaden output to include a global vehicle platform.

The Ontario minister of economic development and trade, Sandra Pupatello, said that the government is committed to keeping the auto industry competitive, but would not comment on the Ford project specifically.

However, the Globe and Mail reported that Ford had asked for financial support for the project which, the paper claimed, could cost up to $1 billion. David Mondragon called such talk of costs for upgrading the plant "premature."

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