Ford and Honda Expand Ontario Operations Despite U.S. Auto Tariffs
Ford has reopened its Oakville assembly plant to build F-Series trucks, while Honda is investing $166 million at its Alliston facility. The moves contrast with General Motors and Stellantis, which have scaled back Canadian operations in response to U.S. tariffs.
Despite a 25 per cent U.S. tariff on automobiles, Ford Motor Co. and Honda Motor Co. are advancing significant investments in their Ontario manufacturing facilities to maintain production and meet demand.
Ford’s Oakville assembly plant has reopened to manufacture pickup trucks, primarily for U.S. buyers, after closing for retooling in 2024. Approximately 2,000 people are currently employed at the facility, which produced 3,488 trucks in October. Ford has invested $5 billion at the Oakville plant, supported by a $464 million grant from the federal government. To supply the factory, Ford also directed a US$500 million investment to its Essex engine plant in Windsor to increase production of 7.3-litre V-8 gas engines. Canadians purchased more than 138,000 Ford F-Series trucks in 2025.
Ford and the Unifor union agreed to bring back all laid-off Oakville workers by next July. When the plant closed, it had 3,200 Unifor members. Under the new three-year agreement, full-rate production workers will earn $50.20 an hour and skilled trades employees will earn $62.71 by the end of the deal.
Honda is investing $166 million at its Alliston, Ontario plant to restart its engine shop and retool for updated hybrid-electric and gas-powered car models. This expenditure is part of a total $867 million investment package announced on Monday. The federal government is contributing $313 million and the Ontario government is contributing $156 million to the total investment. Honda's investment will help maintain 4,000 jobs at its Ontario plant.
The continued investments by Ford and Honda contrast with actions taken by other automakers in response to the tariffs. General Motors idled its electric van plant in Ingersoll, Ontario, laying off more than 1,000 people. Meanwhile, Stellantis is expected to announce the sale of its idle Brampton, Ontario plant to defence contractor Roshel Inc.