Ford Motor’s latest EV losses explain why projects like Oakville stalled

Flavio Volpe, president of the Automotive Parts Manufacturers Association, joins BNN Bloomberg to discuss Ford retreats from EVs as Trump policies grip industry

Ford Motor Co.’s latest losses in its electric vehicle (EV) business shed light on why massive projects tied to Canada never moved forward, especially at the company’s flagship plant in Oakville, Ont.

Earlier this week, Ford announced it will take a $19.5 billion charge on its EV business and move away from its EV plans because of weak consumer demand, ending production of its fully electric F-150 Lightning pickup truck.

• Ford scraps fully-electric F-150 Lightning as mounting losses and falling demand hits EV plans

The pullback shows how difficult it has been for automakers to justify large EV investments without strong demand and policy support, Flavio Volpe, president of the Automotive Parts Manufacturers’ Association explained to BNN Bloomberg.

“These companies are not charities, and they’re not state-owned enterprises like the Chinese,” said Volpe.

“They’ve got to make a profit to invest into new product, and they’ve got to make a product to be able to continue to produce vehicles.”

Oakville’s plan scrapped and delayed plans in Ingersoll and Windsor

The Ford plant in Oakville, Ont., was touted as Canada’s flagship EV hub.

Ford announced a $1.8 billion plan to turn its Oakville assembly plant into an electric vehicle manufacturing hub for its three-row electric SUVs in 2020.

But the project was scrapped last year and the facility pivoted toward a $3 billion conventional truck production.

The Oakville decision is not an isolated case.

General Motors ended production of its electric delivery vans in Ingersoll, Ont., two months ago, citing weak consumer demand.

Honda Canada postponed its plan to build a $15-billion EV supply chain in Alliston, Ont., while Stellantis delayed production of the electric Dodge Charger in Windsor. Both companies cited U.S. tariffs as a primary reason.

Speaking on Ford’s recent decision to scrap its electric pickup truck, Volpe said Ford’s EV strategy was built on expectations that the U.S. government would support EV adoption through subsidies for vehicle production, consumer purchases and charging infrastructure.

“When the Trump administration turned a full 180 on all three of those, they killed whatever short- to mid-term market potential there was for these vehicles,” said Volpe.

The slowdown has also weighed on Canada’s battery supply chain.

Unicore delayed construction of its EV battery plant in Kingston, Ont., citing a declining EV market.

But not all investments have stalled.

Volpe said Volkswagen’s battery plant in St. Thomas, Ont., remains central to supplying batteries for the automaker’s North American production.

How weak U.S. demand affects Canada

Because Canadian auto plants largely produce vehicles for the U.S. market, weaker demand south of the border has a direct impact on investment decisions in Canada.

The auto manufacturing sector contributes more than $16 billion to Canadian GDP, and over 90 per cent of Canadian-made cars are exported to the U.S., according to the Canadian Vehicle’s Manufacturing Association.

Canada has done a lot to push EVs: Volpe

Canada could not have done more than it already has to encourage EV sales, said Volpe.

It structured its EV subsidies by tying funding to actual production rather than upfront payments, which protected taxpayers.

“Those billions were dependent on production. Make the batteries, show us the production evidence, and then we’ll flow funds against that,” said Volpe.

“So when you see bad news, it’s terrible news for workers and suppliers, but it isn’t the same pain and punishment for taxpayers, because those billions have not flown.”

Canada paused its federal rebates for EVs in Canada after funding ran out earlier this year; however, U.S. President Donald Trump eliminated the up to US$7,500 tax credit in the U.S. this fall through his “Big Beautiful Bill.”

• The EV slowdown: Are Canadians losing interest?

Hybrids are the right focus for Ford

Ford announced that it will be focusing on its hybrid cars as part of its broader business strategy. The company said it expects 50 per cent of its global volume to be hybrids, extended-range EVs, and fully electric vehicles by 2030.

Hybrids should be a strategic tool used by car companies as they learn more about the EV market, Garrett Nelson, Senior VP and equity analyst at CFRA, explained to BNN Bloomberg.

“Our take is it was always a little bit too early,” said Nelson.

“The good news for Ford is it has had a lot of success with its hybrid models,” he said, pointing to the Ford Maverick truck and the Ford F-150 Hybrid truck.