Ford's investment demonstrates Canada can be competitive in the global market through strategic partnerships, said Dianne Craig, president and CEO, Ford of Canada. "Working closely with government and labour, we have secured a bright future for our employees at Oakville Assembly." The governments move is seen as an attempt to save well-paying manufacturing jobs, which are key to Ontario's economy but have been steadily vanishing. Ford says every auto job generates 10 other jobs in supporting industries. Ontario's auto sector, like much of central Canada's manufacturers, has been hard hit by a strong dollar and competition from Mexico and the United States, where wages are lower. Governments there have lavished incentives on car makers to convince them to build factories and add production.
In this type of industry, it takes three to dance, you need the union, you need the company and you need the government, Jerry Dias, national president of Unifor. The government aid was first reported by the Globe's Greg Keenan on Monday. The Oakville plant manufactures the Ford Edge, Ford Flex, and two Lincoln models. The company has not specified which models it will add. The Canadian manufacturing sector's share of total employment fell to 10 per cent in 2009 from 16 per cent in 2000 amid weakening demand and a slow economy.
Since 2004, Ford has invested more than $2 billion in Ontario, including a previous $1 billion investment at Oakville to make it a flexible manufacturing plant. In 2010, Ford invested a $590 million in Windsor's Essex engine plant. With each automotive manufacturing job meaning a spinoff of 10 supporting jobs, the auto industry is hugely important to Ontario, which now produces more vehicles annually than neighbouring Michigan.