Ford Motor Co. of Canada Ltd. faces a pension shortfall of $1.8 billion, according to reports, which say the company is asking workers to help alleviate the problem by making pension concessions in ongoing talks to reduce costs and save jobs.

The company and its American parent, Ford Motor Co., did not receive government bailout funds last spring from either the Canadian or U.S. governments, unlike competitors General Motors and Chrysler.

However, Ford is asking Canadian Auto Workers Union members to make similar pension concessions they agreed to with GM and Chrysler earlier this year.

"Prudent management of Ford's pension plans is important to the future success of Ford in Canada and cash conservation is more important than ever," Ford said in a letter to employees and retirees, which was published Wednesday in the Globe and Mail.

In a deal approved in late May, GM workers agreed to freeze pension benefits until 2015, among other concessions. In April, the union agreed to give Chrysler 10 years, instead of five, to top up its pension fund.

According to the letter, the Ford pension plan held assets of $2.91 billion as of Dec. 31. That would cover just 62 per cent of its liabilities if the plan were wound up, the letter said.

Pension assets across a number of industries were decimated by the worldwide economic crisis and the collapse in global stock markets.

While rising stock prices will help alleviate the pension shortfall, Ford would like concessions from workers to make up the difference.

A deal similar to the one with Chrysler would help, but requires approval from employees and retirees.

However, the CAW announced Wednesday that talks with Ford about keeping open a southern Ontario manufacturing plant have stalled.

The two sides had been in talks since Sept. 8, with negotiators trying to work out a new agreement that will cut costs but save jobs.

The CAW says that under pattern bargaining, Ford should be willing to agree to maintain a manufacturing presence in Canada in exchange for union concessions.

But reports say that Ford plans to go ahead with closing its assembly plant in St. Thomas, Ont., in 2011, a move that will put 1,500 employees out of work.

The closure would put Ford's employment numbers below 5,000 workers in Ontario. According to the CAW, the company currently employs 7,400 members, with 1,000 on indefinite layoff.

Four years ago, Ford employed more than 11,000 people in the province, the union said.