OTTAWA — The federal government asked Ford Motor to maintain ownership of its assembly plant in Oakville, Ont., and keep up its production there until at least 2038 in exchange for $464.5 million in financing to make gas- and diesel-powered trucks, The Logic has learned.

The Logic reported in May that the federal government awarded the Detroit automaker with the contribution from its flagship Strategic Response Fund to overhaul the facility and scale its production to 100,000 units per year of the F-Series Super Duty line. The award replaced an earlier agreement that would have seen the federal and Ontario governments each contribute $295 million to a $1.8-billion effort to turn Oakville into a hub for electric vehicles.

Newly released government documents shed more light on the conditions that Ottawa sought to attach to the new deal, beyond the public commitment to create some 1,800 jobs.

“Ford Canada shall maintain ownership and ongoing manufacturing operations of its facilities in Oakville, Ont., for the term,” reads a November 2025 term sheet for the agreement that ends in March 2038. The Logic obtained the document through the Access to Information Act.

It remains unclear whether the condition to maintain ownership of the Oakville assembly plant that was proposed in the term sheet, which was valid through March 31, 2026, made it into the final contract between Ottawa and Ford. It has not been released. Ford Canada did not respond to questions about it for this story. The federal innovation department did not provide further details of the contract beyond what is in the public disclosure. “Details of contribution agreements are subject to commercial confidentiality and cannot be disclosed,” said spokesperson Andréa Daigle, including whether the money is repayable.

The terms of such funding agreements have come under greater scrutiny as U.S. President Donald Trump has slapped 25 per cent tariffs on foreign cars and trucks in a bid to reshore manufacturing. Canada imposed counter-tariffs on U.S. autos, with exceptions for companies making vehicles domestically so long as they keep doing it and stick to planned investments.

Last year, Chrysler parent company Stellantis decided to make the Jeep Compass in Illinois, abandoning plans to do so at its assembly plant in Brampton, Ont. Industry Minister Mélanie Joly has warned Stellantis that it is in breach of a contract that said it would “create and maintain high-skilled jobs” in Canada in exchange for millions of dollars in federal subsidies. On Monday, Stellantis said it is going ahead with the sale of the idled Brampton plant and related equipment to Ontario-based armoured-vehicle maker Roshel for an undisclosed sum.

After trade talks with the White House collapsed in August, U.S. Commerce Secretary Howard Lutnick said Canadian negotiators had sought to reduce tariffs on medium- and heavy-duty trucks at the last minute. Janice Charette, Canada’s chief U.S. trade negotiator, said Ottawa had been consistent in asking for relief for the entire auto sector. 

The Super Duty F-Series includes the bestselling heavier F-250 and F-350 pickup trucks, as well as utility vehicles such as ambulances. Depending on their weight classification, all are subject to 25 per cent U.S. tariffs on either light-duty vehicles, which have been in effect since April 2025, or medium- and heavy-duty trucks, which the U.S. added last November. There is a partial carve-out for any U.S. content in vehicles that comply with the Canada-United States-Mexico Agreement.

Ford CEO Jim Farley has nonetheless been bullish on the role that Oakville will play in its North American supply chain. In an earnings call on Oct. 28, Farley said production volume at Oakville, which reached 3,488 units in October after starting with six in April, is already exceeding expectations. The vehicles made in Oakville started heading to dealerships last month. Highlighting the Oakville plant as an example of how Ford plans to leverage its supply chain to reduce costs, Farley also praised the quality of the trucks made in Ontario as comparable to the Super Duty trucks produced at its main plant in Kentucky. 

Oakville will also help Ford keep up the pace when other plants need some downtime next year to get ready to manufacture the next-generation F-150 truck. “The added capacity will give us flexibility for future plant changeovers and support profitable growth in retail, rental and outfitter channels,” Farley said.

In July, Ford announced $1.25 billion in planned spending over three years across its operations in Ontario after securing a new collective agreement with Unifor, the union representing its Canadian employees. That was on top of the $5 billion that Ford is spending in Oakville, which also includes a new stamping plant.

Ford is not alone in betting on the continued integration of the North American auto industry. 

On Monday, Honda announced $166 million to restart engine production and retool for new models of hybrid and gas-powered vehicles in Alliston, Ont., as part of $867 million in government-backed planned investments. The Japanese automaker also committed US$3 billion for a new factory in Ohio. Honda said the investments in its “integrated manufacturing network” will boost its North American capacity to 1.9 million vehicles per year.

Ontario Economic Development Minister Vic Fedeli told The Logic in May that the province would join the federal government in supporting the pivot from EVs to pickup trucks, but would not divulge the amount until a ribbon-cutting ceremony. That has not yet happened. When contacted for an update, Evan Robinson, Fedeli’s spokesperson, said the minister had nothing to add.