TORONTO - Ford Motor Co. has decided to build its new engine in Mexico after it was unable to reach a deal with the federal and Ontario governments to bring the investment to Windsor, Ont., Unifor said Friday.
The union's national president Jerry Dias said he is "disappointed" that months of discussions between Ford and the two levels of government would not result in the production of a global engine at the Windsor facility.
"The auto industries that are flourishing around the world are ones where there is a deep commitment from government and an understanding of the importance and wisdom of investment — which always pays dividends," Dias said in a statement.
"While we are disappointed that this work will be lost to Mexico, we remain optimistic that the tide is changing. Government, industry and labour are increasingly committed to finding ways of securing the strategic investments we need to rebuild our manufacturing base."
The federal government said Ford recently approached Ottawa and Ontario with an "unprecedented funding request."
"After weeks of discussions it was determined that the terms laid out in Ford's proposal were not in the best interests of Canadian taxpayers," said Jake Enwright, press secretary for Industry Minister James Moore.
"Our government supports projects that secure high-value jobs and deliver long-term economic benefits to Canada. The terms laid out in Ford's proposal did not meet those objectives."
Unifor Local 200, which represents Ford workers in Windsor, is expected to hold a meeting Sunday to explain the decision to its members.
Earlier this month, Ford said it would add 1,000 jobs at its plant in Oakville, Ont. by the end of this year to build the 2015 Ford Edge crossover SUV.