Detroit, MI – Auto giant Ford has said it will have its 1.5-liter and 1.6-liter Ford Fiesta engines produced in Mexico, rather than at its plants in Windsor and Essex, Ontario, Canada.
Canada lost the bid for the work after both federal and provincial governments were unable to reach an agreement with Ford on incentives for the work.
The City of Windsor, alone, reportedly offered Ford a 10-year, $8.5-million tax freeze to bring the work to its plant.
The Essex and Windsor engine plants manufacture V-8 and V-10 engines for the iconic Ford Mustang, as well as the company’s line of trucks, vans, and SUVs.
According to the Canadian media, had Ford decided to have the work done in Ontario, the investment could have topped $1.8 billion and created 1,000 jobs.
Ford’s announcement, which was made without comment, was offset somewhat with news earlier this month that the company would add 1,000 jobs at its assembly plant in Oakville, Ontario, which will produce the 2015 Ford Edge crossover utility vehicle.
Last year, the company announced a $621 million investment in the Oakville plant.