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Ford commits $499M to Canada engine plant, defends trade deal
Many parts from Essex plant are shipped to Ford’s U.S. assembly plants
A Canadian flag flutters in the wind near a Ford logo on the automaker's headquarters in Dearborn, Mich. (Carlos Osorio/Associated Press)
Key Takeaways:
- Ford and Unifor ratified a three-year contract covering about 5,000 Canadian workers with a 9% wage increase and bonuses.
- The agreement includes a new C$700 million investment in the Windsor engine plant plus a previously planned C$550 million for Oakville production.
- Ford said the investments support engine production and North American manufacturing integration as USMCA negotiations and trade disputes continue.
Ford Motor Co. and the union representing its Canadian employees ratified a contract that will mean wage increases and bonuses for thousands of workers, with the automaker committing to an investment in a southwestern Ontario engine plant.
Hourly workers will receive a 9% wage increase over the three-year span of the agreement, Ford said in a news release on July 19.
Eligible full-time permanent employees will get a C$10,000 ratification bonus, while temporary employees will qualify for C$2,000.
The collective agreement includes a new C$700 million ($499 million) investment at its Essex Engine Plant located in Windsor, Ontario, in addition to a previously planned C$550 million for its Oakville assembly factory, which is about to ramp up production of large pickup trucks.
Ford said the new money for the Essex plant will “maximize 5.0-liter engine production” and support the manufacturing of even larger engines. Many of those parts are shipped to Ford’s U.S. assembly plants.
Unifor members at Ford Motor Company facilities across Canada have voted overwhelmingly in support of a new three-year collective agreement that delivers wage increases, bonuses, pension improvements and more. https://t.co/yDPV3T1apF — Unifor (@UniforTheUnion) July 19, 2026
The engine facility is a short drive from the Gordie Howe International Bridge, a new span that’s finally set to open this month, and is designed to speed trade flows between Canada and the U.S. for the automotive and other sectors.
“This agreement is about investing in our people and Canada’s future,” Ford CEO Jim Farley said in a statement.
Farley also spoke out in favor of the U.S.-Mexico-Canada Agreement, which the Trump administration has so far refused to renew. “A strong, integrated North American manufacturing system is essential to our competitiveness, and a revised USMCA is critical to fending off the cost and currency advantages enjoyed by imported vehicles from Korea and Japan,” he said.
The union, known as Unifor, represents about 5,000 Ford workers in Canada.
