Ford Motor Company announced April 4 it is delaying the start of electric vehicle production at its Oakville assembly plant.

Production is being moved to 2027 from 2025.

“As the No. 2 EV brand in the U.S. for the past two years, we are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time,” said Jim Farley, Ford president and CEO, in a news release. “Our breakthrough, next-generation EVs will be new from the ground up and fully software enabled, with ever-improving digital experiences and a multitude of potential services.”

The company said the transformation of its Oakville assembly plant, which requires a comprehensive overhaul of the plant from gas vehicle assembly to an EV manufacturing plant, is set to begin in the second quarter of this year, as planned.

Ford said it continues to prepare for the market launch of its new three-row electric vehicles, which will be built in Oakville, but the launch is being re-timed to 2027 from 2025. The company added the additional time will allow for the consumer market for three-row EVs to further develop, which will allow Ford to take advantage of emerging battery technology.

“We value our Canadian teammates and appreciate that this delay will have an impact on this excellent team,” Farley said in the release. “We are fully committed to manufacturing in Canada and believe this decision will help us build a profitably growing business for the long term.”

Unifor, which represents 3,200 workers at the Oakville assembly plant, said it is disappointed in the decision.

“Unifor is extremely disappointed by the company’s decision. Our members have done nothing but build best-in-class vehicles for Ford Motor Company and they deserve certainty in the company’s future production plans,” said Unifor national president Lana Payne, said in a news release. “I want to be very clear here. Our members can be assured that we will push the company to explore every single possible opportunity to lessen the impact of this decision on them and their families.”

Unifor said Ford Edge production is set to end in about a month at the Oakville plant.

In 2024 contract negotiations with Ford, Unifor negotiated income and benefit transition supports for the Oakville plant’s workers, which would support them for a retooling period that was originally expected to last eight months.

“There will be unexpected setbacks in the transition to EV, but we fully expect Ford to investigate every available option to support our Oakville members. It is unacceptable, after 120 years of operation in this country, that Ford does not plan to build a single vehicle in Canada for years on end,” said Local 707 Oakville assembly complex chairperson Marc Brennan, in the Unifor news release.

“This is a significant setback and while the first stages of retooling are still on track and we remain committed to securing an EV future for the workers of Oakville, the immediate challenges faced by our members will be front and centre in our discussions with the company,” Payne added.

Ford said it will work with Unifor to mitigate the impact the delay will have on its workforce in Oakville.

“We are committed to taking care of our valued Oakville employees through this transition,” said Bev Goodman, president and CEO, Ford Canada, in the news release from Ford. “While this change requires a revision to the timeline, it will support a viable and growing future for our company, employees and dealers.”