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Key Takeaways
- Ford will expand manufacturing of Super Duty pickups at a plant in Canada that was expected to build EVs, including three-row SUVs.
- The automaker plans to spend $3 billion to boost production, because it can’t keep up with demand.
- Ford said it remains committed to making three-row electric SUVs.
Ford Motor ( F ) on Thursday said it was expanding production of its Super Duty pickup trucks to a Canadian plant that was previously scheduled to be converted to electric vehicle (EV) manufacturing.
The company noted that the new plan calls for spending $2.3 billion to install assembly and integrated stamping operations at its complex in Oakville, Ontario, and another $700 million to boost production at supporting facilities in both the U.S. and Canada.
Earlier this month, Ford said it sold 536,050 vehicles in the second quarter, 0.8% higher than the same period in 2023. Combined, Ford truck sales were up 4.5% to 308,920.
Chief Executive Officer (CEO ) Jim Farley explained that demand for the Super Duty trucks is so strong, the two plants that currently make them, in Kentucky and Ohio, can’t keep up even while working at full capacity. The expansion is aimed at building 100,000 more of the vehicles.
Plant Was Supposed To Be ‘Hub of Electric Vehicle Manufacturing’
In April 2023, Ford said it would invest 1.8 billion Canadian dollars ($1.3 billion) to transform Oakville into a “hub of electric vehicle manufacturing,” which included making three-row electric SUVs. However, three months ago the company delayed the launch until 2027.
In today’s press release, Farley said that the company remains committed to building those SUVs.
Shares of Ford rose 1.8% to $14.74 as of 12:49 p.m. ET Thursday and have risen 20% this year.