Ford wants cash for Oakville plant upgrade
Ford Motor Co. is asking Canadian governments to foot at least 20% of the cost for the planned refurbishing of its...
February 14, 2003 by Canadian Plastics
Ford Motor Co. is asking Canadian governments to foot at least 20% of the cost for the planned refurbishing of its Oakville, ON manufacturing facility. The project is expected to cost over $1 billion; Ford says it will need at least $200 million to offset the high cost of the investment.
In asking for government aid, Ford is following a pattern established by other automotive OEMs which seek financial incentive packages in return for building or upgrading a facility in a particular location. DaimlerChrysler is currently negotiating with Canadian governments over an aid package to help it build a new assembly plant in Windsor, ON. DaimlerChrysler has requested more than $300 million, and analysts speculate that Ford’s announcement yesterday will increase pressure on the Ontario and federal governments to meet the company’s demands.
Ford says it intends to build a flexible manufacturing plant at the Oakville site. The structure of the aid package could take the form of tax breaks or training money, according Jim Padilla, president of Ford North America.