Ford Motor Co. is preparing to announce plans Thursday that it will spend about $700 million to retool its assembly plant in Oakville, Ontario, according to the Globe and Mail newspaper in Toronto.
Ford, which assembles the Ford Edge, Ford Flex and Lincoln MKT in Oakville, will spend $675 million to $725 million at its only Canadian assembly plant. The federal and Ontario governments also will contribute about $135 million, the paper said.
The paper said Ford has been negotiating with the two governments for more than two years on the future of the factory.
The investment will allow Ford to assemble the next-generation Edge and Lincoln MKX crossovers on the same platform as the Fusion and MKZ sedans. The plant also produces the larger Ford Flex and the Lincoln MKT.
Ford declined to comment on the report.
The auto industry is crucial to the economy of Ontario, home to all Canada's auto assembly plants and the majority of its 150,000 auto-related industrial jobs.
The planned investment is part of Ford's tentative agreement last fall with the Canadian Auto Workers, now known as Unifor, to cut costs and keep vehicle production in Canada. The agreement covered wages and benefits for 4,500 Ford auto workers.
CAW President Ken Lewenza said at the time the four-year deal would provide no base wage adjustments but hourly employees will receive C$2,000 lump sum payments in the last three years of the contract.
Upon ratification, eligible employees will receive a C$3,000 ratification bonus.
The union said the agreement would create about 600 jobs at Ford's Canadian operation.
The agreement also extends the number of years that new employees will work at lower pay before earning top-tier wages.
Brad Wernle contributed to this report.
